CHICAGO: US soyabean futures rose for a second straight session on Monday, holding near a more than four-year high hit last week, on strong demand from top buyer China and data showing the US soya crush pace hit an all-time high last month. The strong demand stoked worries about thinning supplies of the oilseed following a US Department of Agriculture (USDA) report last week that forecast the tightest end-of-season supply in seven years.
Corn and wheat followed soyabeans higher. Rising energy and equities markets, following promising news about another COVID-19 vaccine, offered grains additional support. Chicago Board of Trade (CBOT) January soyabeans were up 3-1/2 cents at $11.51-1/2 a bushel at 12:21 p.m. CST (1821 GMT). December corn was up 4 cents at $4.14-1/2 a bushel while CBOT December wheat gained 1-1/2 cents to $5.95 a bushel.
"For soyabeans, it's not only the crush that's strong, it's the exports too. The market continues to try to move high enough to slow down the demand," said Don Roose, president of US Commodities. After the USDA last week cut its US soyabean ending-stocks estimate to a seven-year low of 190 million bushels, "that doesn't leave much room for error," Roose said.
Soyabean exports remain robust as the USDA reported more than 2.2 million tonnes inspected for export last week, about three-quarters of it bound for China. The National Oilseed Processors Association (NOPA) on Monday reported the US October soya crush at a record-high 185.245 million bushels, topping all trade estimates. Better-than-expected rains in Argentina and parts of Brazil capped gains in corn and soyabeans following early-season worries that dry conditions would limit crops.
Comments
Comments are closed for this article.