BLBG: Soybeans Rise on Chinese Demand, Poised for Rebound This Year
By Sungwoo Park and Alistair Holloway
Dec. 31 (Bloomberg) -- Soybeans advanced on signs of increasing demand for U.S. supplies, heading for an annual rally after a 19 percent tumble in 2008.
The oilseed has gained 7.2 percent this year, helped by surging Chinese demand and soaring investment in commodities prompted by a weakening dollar. U.S. exporters reported sales of 348,000 metric tons to China for delivery in the marketing year that ends Aug. 31, the Department of Agriculture said yesterday.
“Soybeans continue to get a boost from rising demand from China,” said Han Sung Min, a broker at Korea Exchange Bank Futures Co. in Seoul.
Soybeans for March delivery added as much as 0.8 percent to $10.5275 a bushel on the Chicago Board of Trade. The contract was at $10.52 at 10:38 a.m. in London.
China’s soybean imports in the first quarter of 2010 may increase as much as 2 million tons from the current quarter to 12 million tons, the China National Grain & Oils Information Center said Dec. 29.
Corn, soybeans and wheat have more than doubled this decade. The Reuters/Jefferies CRB Index of 19 raw materials has surged 24 percent this year, heading for the biggest yearly gain since 1979. The U.S. Dollar Index, a gauge of the greenback’s value against six currencies, has dropped 4.6 percent this year.
Corn for March delivery added 0.3 percent to $4.15 a bushel. The grain has increased 2.1 percent this year and reached a high of $4.7175 on June 10.
Argentina, the world’s second-biggest corn exporter after the U.S., will harvest 15.8 million tons next year, up from the previous season’s 13.8 million tons, the Buenos Aires Cereals Exchange said Dec. 30.
Wheat for March delivery gained 0.7 percent to $5.485 a bushel. The price has dropped 10 percent this year and touched a low of $4.3925 on Oct. 2, partly on slack demand for U.S. inventories.
Milling wheat for March delivery traded on Liffe in Paris slipped 0.2 percent to 133.50 euros ($192.25) a ton.
To contact the reporters on this story: Sungwoo Park in Seoul at spark47@bloomberg.net; Alistair Holloway in London at aholloway1@bloomberg.net
