Soybeans extend run to two-year peak as exports to China flow

PARIS/SINGAPORE: Chicago soybean futures extended their rally on Thursday to set a new two-year high as brisk demand from China continued to support the oilseed market.

Corn was also steady after setting a six-month high in morning trade, similarly buoyed by sales to China.

Wheat rose on support from strong international demand as it recovered from Wednesday's three-week low.

The US Department of Agriculture on Wednesday confirmed private sales of 327,000 tonnes of US soybeans to China. The USDA has announced US soy sales to China in each of the past nine business days.

Chinese demand has also boosted vegetable oil prices, reinforcing strength in oilseeds.

"The oilseeds are once again in the spotlight," consultancy Agritel said. "US soybean export activity to China remains buoyant."

The most active soybean futures on the Chicago Board of Trade were up 0.2% at $10.12-3/4 a bushel by 1151 GMT, having touched their highest since June 2018 at $10.18-1/4.

Traders will be watching for any further daily export sales to China, as well as details in the USDA's weekly US export report at 1230 GMT.

On Euronext, spot rapeseed futures hit a six-month high at 395.25 euros ($466.36) a tonne, supported by drought-affected rapeseed sowing in Europe.

CBOT corn was up 0.2% to $3.72-1/2 a bushel after touching its highest since March 12 at $3.73.

China is expected to import larger volumes of corn because of domestic crop losses and strong demand.

The Chinese corn crop is expected to fall by up to 10 million tonnes, or nearly 4%, from the latest government estimates after heavy wind and rain toppled crops in major production areas, analysts said.

CBOT wheat was up 0.6% at $5.45 a bushel.