Investing.com - Soybean futures rose to a fresh five-month high on Wednesday, amid indications demand from top consumer China will remain strong in the near-term, while investors readjusted positions ahead of Friday’s closely-watched U.S. government report on global soybean supplies.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD13.3862 a bushel during European morning trade, edging up 0.32%.
It earlier rose by as much as 0.4% to trade at USD13.3875 a bushel, the highest since September 23.
Soybean prices have gained in nine of the last ten trading sessions leading up to Wednesday.
Futures have rallied almost 11% since the beginning of February, as traders focused on distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
China's northeast province of Heilongjiang, the country's top corn and soy grower, aims to expand its corn acreage by paring back on land for soy crops in an effort to raise total grains output by 8% in 2012.
Speaking on the sidelines of the National People's Congress in Beijing, Sui Fengfu, director of the General Bureau of State Farms in Heilongjiang, said, “Corn acreage will be increased slightly while soy acreage will fall.”
Heilongjiang, which contributes a third of the country's soy output, cut its soy acreage by 10% in 2011, reducing output by 7.5%, or 5.4 million tonnes, from a year earlier.
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.
The lower soy acreage figure fuelled speculation China would import more supplies from the U.S. and decrease its reliance on domestic soy.
Last week, influential industry group Oil World said that China will import 14% more soybeans in the first three months of 2012 than a year earlier, due to declining domestic production and rising demand.
The Asian nation will import 12.5 million metric tons of soybeans from January through March this year. U.S. farmers sold 2.923 million metric tons of the oilseed to China in the biggest one-day deal on record last month.
Lingering concerns over soy crop conditions in major South American growers also provided support after two industry groups cut their estimates for Brazil's 2011-12 soybean crop as drought damage became more apparent.
South America is a major soybean exporter and competes with the U.S. for business on the global market. A downbeat crop outlook there could increase demand for U.S. supplies.
Reduced South American production will boost U.S. exports by 22% to a record 42.2 million tons in the year that begins September, the USDA said last month.
Soy traders were looking forward to the USDA’s World Agricultural Supply & Demand Estimates report for March due on Friday.
Some market analysts expect the agency to raise its estimates for U.S. soybean exports, given increased demand for U.S. supplies and a downward revision in the South American soy crop.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery was flat to trade at USD6.5763 a bushel, while corn for May delivery added 0.25% to trade at USD6.5550 a bushel.
On the Chicago Mercantile Exchange, soybeans futures for May delivery traded at USD13.3862 a bushel during European morning trade, edging up 0.32%.
It earlier rose by as much as 0.4% to trade at USD13.3875 a bushel, the highest since September 23.
Soybean prices have gained in nine of the last ten trading sessions leading up to Wednesday.
Futures have rallied almost 11% since the beginning of February, as traders focused on distressed crops in major South American soy growers and on hopes demand from top consumer China will remain robust in the near-term.
China's northeast province of Heilongjiang, the country's top corn and soy grower, aims to expand its corn acreage by paring back on land for soy crops in an effort to raise total grains output by 8% in 2012.
Speaking on the sidelines of the National People's Congress in Beijing, Sui Fengfu, director of the General Bureau of State Farms in Heilongjiang, said, “Corn acreage will be increased slightly while soy acreage will fall.”
Heilongjiang, which contributes a third of the country's soy output, cut its soy acreage by 10% in 2011, reducing output by 7.5%, or 5.4 million tonnes, from a year earlier.
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.
The lower soy acreage figure fuelled speculation China would import more supplies from the U.S. and decrease its reliance on domestic soy.
Last week, influential industry group Oil World said that China will import 14% more soybeans in the first three months of 2012 than a year earlier, due to declining domestic production and rising demand.
The Asian nation will import 12.5 million metric tons of soybeans from January through March this year. U.S. farmers sold 2.923 million metric tons of the oilseed to China in the biggest one-day deal on record last month.
Lingering concerns over soy crop conditions in major South American growers also provided support after two industry groups cut their estimates for Brazil's 2011-12 soybean crop as drought damage became more apparent.
South America is a major soybean exporter and competes with the U.S. for business on the global market. A downbeat crop outlook there could increase demand for U.S. supplies.
Reduced South American production will boost U.S. exports by 22% to a record 42.2 million tons in the year that begins September, the USDA said last month.
Soy traders were looking forward to the USDA’s World Agricultural Supply & Demand Estimates report for March due on Friday.
Some market analysts expect the agency to raise its estimates for U.S. soybean exports, given increased demand for U.S. supplies and a downward revision in the South American soy crop.
Elsewhere on the Chicago Mercantile Exchange, wheat for May delivery was flat to trade at USD6.5763 a bushel, while corn for May delivery added 0.25% to trade at USD6.5550 a bushel.