Thursday, March 11, 2010

Soybeans Rise on Lower U.S. Inventories, China Import Purchase

March 10 (Bloomberg) -- Soybeans rose to a one-week high after the U.S. said inventories will be smaller than forecast and that China purchased supplies from American exporters.

Stockpiles on Aug. 31 will total 190 million bushels, less than the 210 million projected in February, the U.S. Department of Agriculture said today in a report. The average estimate of 20 analysts surveyed by Bloomberg was for 193 million. China, the biggest buyer, purchased 110,000 metric tons for delivery in the year that begins Sept. 1, the USDA said today.

“The U.S. soybean stockpiles are going to be tight again this year,” said David Smoldt, the vice president of operations at FCStone LLC in West Des Moines, Iowa. The China purchase is a “positive sign” because it means U.S. supplies remain attractive, even with record crops expected in South America, Smoldt said.

Soybean futures for May delivery rose 10.5 cents, or 1.1 percent, to $9.58 a bushel on the Chicago Board of Trade, after reaching $9.6425, the highest level for the most-active contract since March 3. The commodity has declined 8.6 percent this year on forecasts for record crops in Brazil and Argentina, the two biggest producers and exporters after the U.S.

Soybeans are the second-biggest U.S. crop, trailing corn, with a value of $31.8 billion last year, government figures show.