Soybean Futures Rise to One-Week High as U.S. Export Sales Soar

Jul 24, 2014 1:23 pm ET

July 24 (Bloomberg) -- Soybean futures rose to a one-week high as exports surged from the U.S., the world’s second-biggest shipper, while concern mounted that dry weather in the Midwest may trim yields. Corn and wheat fell.

In the week ended July 17, net soybean sales for delivery in the 12 months that begin Sept. 1 more than tripled to 2.45 million metric tons from a year earlier, U.S. data showed today. Dryness leaves the potential for crop stress in 15 percent of Midwest growing areas, Commodity Weather Group in Bethesda, Maryland, said in a report.

“We do need to have rains to fill the pods on the crop,” Brian Hoops, the president of Midwest Market Solutions in Springfield, Missouri, said in a telephone interview. “Prices have gotten cheap enough to stimulate quite a bit of demand.”

Soybean futures for November delivery rose 1 percent to $10.875 a bushel at 12:22 p.m. on the Chicago Board of Trade. Earlier, the price reached $11.0725, the highest for a most- active contract since July 17. Trading was 32 percent above the 100-day average for this time, data compiled by Bloomberg show.

Yesterday, the price touched $10.55, the lowest since Oct. 5, 2010, on the outlook for a record-high crop in the U.S., the biggest grower. Brazil was the top exporter last year.

Corn futures for December delivery fell 0.7 percent to $3.6825 a bushel. Earlier, the price touched $3.6425, the lowest since July 7, 2010. Through yesterday, the grain slumped 24 percent in the past 12 months on the outlook for a bumper crop in the U.S., the biggest producer.

Wheat futures for September delivery dropped 0.1 percent to $5.30 a bushel. Yesterday, the price touched $5.2025, the lowest since July 7, 2010.

In a tender yesterday, Egypt, the biggest importer, bought a combined 235,000 tons from Russia, Romania and Ukraine.

--With assistance from Rudy Ruitenberg in Paris and Phoebe Sedgman in Melbourne.