Investing.com - Soybean futures were up on Tuesday, trading just below the previous session’s eight-month high amid indications of strong Chinese demand for U.S. soy and as investors readjusted positions ahead of a closely-watched report from the U.S. Department of Agriculture later in the day.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD14.3862 a bushel during European morning trade, gaining 0.5%.
It earlier rose by as much as 0.75% to trade at a session high of USD14.4088. On Monday, prices climbed to USD14.4662 a bushel, the highest since September 1.
Soy prices found support after official Chinese trade data revealed demand for the oilseed remains strong. China's imports of soybeans rose in March to 4.83 million tonnes, higher than February imports of 3.83 million and up a whopping 21.6% from the previous year.
In the first quarter, shipments totaled 13.33 million tons.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the U.S. Department of Agriculture.
Meanwhile, soy traders were looking forward to the USDA’s World Agricultural Supply & Demand Estimates report for April due out later in the day.
Some market analysts expect the agency to lower its forecast of U.S. 2011-12 soybean ending stocks, given increased demand for U.S. supplies. Market players also expected the USDA to downgrade its estimates of the 2011-12 soy harvests in Brazil and Argentina.
According to market expectations, the USDA will peg Brazil's soybean production at 67.11 million tonnes, down from 68.5 million in March. Argentinean production was seen dropping to 45.193 million from 46.5 million.
Last month, the USDA lowered its combined soybean production estimates for Brazil and Argentina and said that reduced South American output will boost U.S. exports by 22% to a record 42.2 million tons in the marketing year that begins in September.
Brazil and Argentina are major soy exporters and compete with the U.S. for business on the global market. Downbeat South American crop prospects could increase demand for U.S. supplies.
Soybean prices have rallied nearly 17% since the beginning of February as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery added 0.3% to trade at USD6.4488 a bushel, while corn for May delivery rose 0.5% to trade at USD6.5288 a bushel.
Markets expect the USDA to confirm U.S. corn stocks will fall to a fresh 16-year low.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD14.3862 a bushel during European morning trade, gaining 0.5%.
It earlier rose by as much as 0.75% to trade at a session high of USD14.4088. On Monday, prices climbed to USD14.4662 a bushel, the highest since September 1.
Soy prices found support after official Chinese trade data revealed demand for the oilseed remains strong. China's imports of soybeans rose in March to 4.83 million tonnes, higher than February imports of 3.83 million and up a whopping 21.6% from the previous year.
In the first quarter, shipments totaled 13.33 million tons.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the U.S. Department of Agriculture.
Meanwhile, soy traders were looking forward to the USDA’s World Agricultural Supply & Demand Estimates report for April due out later in the day.
Some market analysts expect the agency to lower its forecast of U.S. 2011-12 soybean ending stocks, given increased demand for U.S. supplies. Market players also expected the USDA to downgrade its estimates of the 2011-12 soy harvests in Brazil and Argentina.
According to market expectations, the USDA will peg Brazil's soybean production at 67.11 million tonnes, down from 68.5 million in March. Argentinean production was seen dropping to 45.193 million from 46.5 million.
Last month, the USDA lowered its combined soybean production estimates for Brazil and Argentina and said that reduced South American output will boost U.S. exports by 22% to a record 42.2 million tons in the marketing year that begins in September.
Brazil and Argentina are major soy exporters and compete with the U.S. for business on the global market. Downbeat South American crop prospects could increase demand for U.S. supplies.
Soybean prices have rallied nearly 17% since the beginning of February as market sentiment has been dominated by concerns over distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery added 0.3% to trade at USD6.4488 a bushel, while corn for May delivery rose 0.5% to trade at USD6.5288 a bushel.
Markets expect the USDA to confirm U.S. corn stocks will fall to a fresh 16-year low.