CHICAGO: US soybean prices climbed to a four-month high on Friday while wheat and corn also advanced on export demand for US grains as concerns persisted about crop production in South America.
Soybeans rose after the US Department of Agriculture said exporters reported sales of 2.92 million tonnes of US soybeans to China, the largest single US soybean sale on record. The deal was reported two days after a Chinese delegation signed agreements in Iowa to buy millions of tonnes of the oilseed.
All but 173,000 tonnes were intended for delivery in the 2012/13 marketing year that begins Sept. 1, 2012, with the rest for delivery in the current marketing year.
"These are big numbers and it tells you the seriousness of China pricing," said Don Roose, analyst and president of US Commodities in West Des Moines, Iowa. "That is a big number for a new-crop bean sale."
Soybeans drew additional support from concerns about South American supplies. Argentina's Agriculture Ministry on Thursday estimated the country's 2011/12 soybean harvest at 43.5 million to 45 million tonnes, well below USDA's current forecast of 48 million.
"Everybody is bullish again. The Argentine numbers were below everybody's expectations, the vessel lineup in Brazil is huge and their cash (market) is really strong since there's not
much moving," said Paul Haugens, vice president for Newedge USA in Chicago.
CBOT soybeans were on track for a 3.3 percent gain this week, their biggest weekly rise since mid-October.
At the Chicago Board of Trade as of 10:53 a.m. CST (1653 GMT), March soybeans were up 11 cents at $12.69-1/4 per bushel after reaching $12.73-1/4, the highest spot price on the continuous chart since Oct. 14, 2011.
CBOT March wheat was up 9-1/2 cents at $6.38-1/4 per bushel and March corn was up 4 cents at $6.40-1/4 a bushel.
US markets will be closed on Monday for the Presidents Day holiday.
WHEAT
Wheat was up for a second day, with front-month March rising above its 100-day moving average.
The market drew support from reports that Ukraine may restrict wheat exports. Ukrainian grain traders have agreed to limit wheat exports to 1.7 million tonnes in February-July following a request from the government which is concerned about supply to the domestic market, Ekonomicheskie Izvestia newspaper reported.
Ukraine expects to lose a large share of its winter grains this year due to bad weather.
Also, USDA confirmed sales of 120,000 tonnes of US soft red winter wheat to Egypt for 2011/12 delivery.
Grains drew background support from hopes of a long-awaited Greek bailout deal. World stocks hit a 6-1/2 month peak and the euro rallied as optimism that Greece will seal a long-awaited bailout deal next week fueled risk appetite.
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