Soybean Futures Rise on Signs U.S. Exports, Processing to Climb

Feb 11, 2014 4:00 pm ET

Feb. 11 (Bloomberg) -- Soybean futures rose on speculation that demand for U.S. supplies will exceed the government’s forecast yesterday. Wheat advanced, while corn declined.

Soybeans inspected for export since Sept. 1 rose 17 percent as of Feb. 6 from a year earlier, the U.S. Department of Agriculture said yesterday. Margins for processors including Bunge Ltd. rose as much as 5.2 percent today to 81.25 cents a bushel, the highest for the date since 2010, exchange data show. The agency left its forecast for crushing unchanged from a month earlier and boosted the export outlook by 1 percent.

“The market is rising on speculation that exports and crush will exceed the USDA forecasts,” Terry Reilly, a senior commodity analyst at Futures International Inc. in Chicago, said in a telephone interview. “Demand for crushing beans is going to stay strong and reduce U.S. supplies.”

Soybean futures for March delivery rose 0.7 percent to close at $13.3475 a bushel at 1:15 p.m. on the Chicago Board of Trade. The price has gained 3.3 percent this year.

Soybean meal rose to the highest in almost five months on concern that hot, dry weather would erode prospects for oilseed output in South America. Futures for March delivery gained 1.2 percent to $449.20 for 2,000 pounds after reaching $451.10, the highest for a most-active contract since Sept. 13.

Soybean production in South America may be as much as 5 million tons less than expected because of heat and dryness in Argentina and Brazil, the world’s top exporter, Oil World, a Hamburg-based research company, said today in a report.

Brazil’s Parana state agency said today that 66 percent of the crop was in good condition, down from 88 percent a week earlier.

Wheat futures for March delivery advanced 0.9 percent to $5.9025 a bushel.

The price rose 1.3 percent yesterday after the USDA cut its forecast for domestic reserves as of May 31 by 8.2 percent from the January estimate and reduced the global projection 0.9%.

Corn futures for March delivery fell 0.3 percent to $4.415 a bushel.

--With assistance from Whitney McFerron in London and Gerson Freitas Jr. in São Paulo. Editors: Patrick McKiernan, Millie Munshi