Soybeans Rise on Increasing Overseas Demand for U.S. Supplies

Dec. 3 (Bloomberg) -- Soybeans rose the most in two weeks on signs that overseas demand for the U.S. oilseed and animal feed continues to increase.

U.S. exporters sold 722,550 metric tons (26.5 million bushels) in the week ended Nov. 26, up from 359,783 tons a year earlier, the Department of Agriculture said today in a report. Total sales since Sept. 1 are up 58 percent to about 27.8 million tons, including 17 million to China, the biggest consumer. Export shipments of soybean meal, an animal feed, last week were the largest since April 1998, USDA data show.

“It’s solid export demand that is underpinning soybean prices,” said Bill Nelson, a senior economist for Doane Advisory Services Inc. in St. Louis. “USDA is underestimating Chinese demand.”

Soybean futures for January delivery rose 13 cents, or 1.3 percent, to $10.47 a bushel on the Chicago Board of Trade, the biggest gain since Nov. 17. In the previous two days, the most- active contract fell 2.5 percent on speculation export demand may slow from its record pace. Soybeans are up 13 percent since the end of September and touched a five-month high on Dec. 1.

The U.S. soybean crop was valued last year at $27.4 billion, behind corn at $47.4 billion, government figures show.