Soy prices pick up
U.S. soybean futures edged higher Wednesday, buoyed by a weaker U.S. dollar and steady demand for the oilseed.
In electronic trading, Chicago Board of Trade futures for November delivery recently were up four cents, or 0.3%, at $14.97 3/4 a bushel.
Soybeans are getting a lift from generally favorable outside markets. European and Asian markets traded broadly higher as Spain was able to hang on for the time being to its credit rating.
The Wall Street Journal Dollar Index was recently down 0.42% at 69.25. A weaker dollar typically benefits U.S. agricultural commodities, because it makes purchases less expensive for foreign importers.
Soybean futures also are supported by continuing signs of strong export demand from China, the world's biggest soybean importer, and the U.S. soybean-crushing industry, said Rich Nelson, chief strategist with brokerage and advisory firm Allendale Inc. in McHenry, Ill.
On Tuesday, the U.S. Department of Agriculture said private exporters reported the sale of 110,150 tons of soybeans to unknown destinations. Traders said the sale likely went to China.
Sharp declines in soybean futures since early September have made U.S. prices more attractive for importers. "It appears China has found a U.S. soybean price they're interested in," Mr. Nelson said.
Soybean futures have declined 15% from their record closing high of $17.71 a bushel on Sept. 4. The oilseed has been pressured by managed funds exiting bullish bets amid reports that the U.S. crop suffered less damage than initially expected from this past summer's historic drought.
The USDA last week raised its forecast for domestic production this fall by 9%, topping analysts' expectations. The U.S. crop would still be the smallest in five years, and traders continue to worry about tight domestic and global supplies...
Source: Argentine Beef Packers S.A.