Soybeans Rise From 10-Week Low on Strengthening Demand in China

May 26 (Bloomberg) -- Soybeans rose from a 10-week low on speculation that rising demand for food and livestock feed in China will outweigh European debt woes.

The Organization for Economic Cooperation and Development raised its growth forecasts for 2010 and 2011 as emerging economies such as China, the biggest buyer of soybeans, outpace debt-burdened developed countries to drive the global expansion. Crude oil jumped the most in three months and equities rose after a government report showed expanding U.S. manufacturing.

“China still remains part of the demand story,” said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana. “Soybeans are getting a bounce today from the rally in stocks and crude oil.”

Soybean futures for July delivery rose 7.5 cents, or 0.8 percent to $9.38 a bushel on the Chicago Board of Trade, the biggest gain since April 22. Yesterday, the price touched $9.275, the lowest level since March 15.

Sales of U.S. soybeans from Sept. 1 to May 13 totaled 38.119 million metric tons, a 14 percent increase from 33.523 million during the year-earlier period, Department of Agriculture data show.

China will import 46 million tons from all suppliers in the year that ends Oct. 1, up from a 43.5 million forecast a month ago and a record 41.1 million a year earlier, the USDA said this month. Imports may grow to 49 million next year, the department said.

The soybean crop in the U.S., the world’s largest grower, was valued at $31.8 billion last year, second only to corn at $48.6 billion, government figures show.