U.S. grains: Soybeans surge to one-week high on export demand, meal strength

(Lisa Guenther photo)

Reuters — Soybeans climbed to a one-week high on Friday with a boost from strong export demand and meal prices, ahead of a key U.S. government crop report next week.

Corn also advanced on spillover support from soybeans and export demand, while wheat futures rose on technical buying and in sympathy with corn and soybeans.

Private exporters reported sales of 240,000 tonnes of U.S. soybeans to unknown destinations for delivery in the current 2014-15 marketing year, the U.S. Department of Agriculture (USDA) said Friday.

“I remain a long-term bear (on soybeans), but I tell (the) client to be prepared for periodic rallies because the demand is so strong,” said Arlan Suderman, analyst at Water Street Solutions. “Until we get the South American harvest, the supply is not going to overwhelm that demand.”

The fresh U.S. soybean sales, along with strength in soymeal, which is processed from soybeans, lifted the oilseed, said Terry Reilly, senior commodity analyst at Futures International.

Unconfirmed talk that China might loosen restrictions on imports of U.S. distillers’ dried grains (DDGs) raised thoughts of tightening supply of U.S. feed ingredients and added to higher soy prices, traders said.

January soybean futures, added 2.5 per cent or 25-1/2 cents to $10.36 a bushel, finishing with a two per cent weekly gain (all figures US$).

March corn futures rose 1.4 per cent or 5-1/4 cents to $3.95 a bushel, notching their second straight weekly advance.

Weekly export sales for corn and soybeans, reported by USDA on Thursday, beat market expectations at nearly 1.2 million tonnes for each crop.

Grain markets looked toward a monthly world crop report from USDA due on Dec. 10. Analysts expect USDA to trim its forecast of U.S. 2014/15 soybean ending stocks and raise its estimates of corn and wheat ending stocks.

Chicago Board of Trade March wheat futures gained 0.7 per cent or 4-1/4 cents at $5.94 per bushel, registering a 2.7 per cent weekly gain.

— Rod Nickel is a Reuters correspondent based in Winnipeg. Additional reporting for Reuters by Julie Ingwersen in Chicago, Gus Trompiz in Paris and Colin Packham in Sydney.

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