Soybean Premiums Drop as U.S. Farmers Boost Sales Following Futures Rally

Cash premiums for soybeans shipped to export terminals near New Orleans declined relative to Chicago futures as farmers increased sales after prices rallied for a ninth straight session. Corn premiums were unchanged.

The spot-basis bid, or premium, for soybeans delivered in August dropped to 80 cents to 94 cents a bushel above November futures on the Chicago Board of Trade from 92 cents to $1 on Aug. 6, U.S. Department of Agriculture data show. Corn premiums for delivery this month were 25 cents to 30 cents above September futures.

“The cash soybean market is weaker because farmers are moving more of last year’s crop,” said Dax Wedemeyer, an analyst at U.S. Commodities Inc. in West Des Moines, Iowa.

Soybean futures for November delivery rose 1.5 cents, or 0.1 percent, to close at $10.35 a bushel at 1:15 p.m. on the Chicago Board of Trade. Prices gained for the ninth straight session, the longest rally since September 2007.

Corn futures for September delivery fell 2 cents, or 0.5 percent, to $4.03 a bushel. On Aug. 5, the price reached $4.2525, the highest level for the contract since Jan. 12.

Government inspectors examined 7.13 million bushels of soybeans for export in the week ended Aug. 5, down 40 percent from a year earlier, the USDA said today in a report. Corn inspections rose 17 percent.

“Soybean shipments are slowing because exporters are waiting for big crops” that farmers will begin harvesting in the next six weeks, Wedemeyer said. “Corn demand is holding up a little better.”

Soybeans Rise on Bets Rain to Reduce U.S. Midwest-Crop Yields

July 13 (Bloomberg) -- Soybeans rose to an eight-week high on speculation that heavy Midwest rainfall during the past six weeks will reduce yields in the U.S., the world’s largest grower and exporter.

About 65 percent of the crop was rated good or excellent on July 11, down from 66 percent a year earlier and 75 percent in the week ended June 6, the U.S. Department of Agriculture said yesterday. Conditions deteriorated in Iowa, Nebraska, Missouri, Kansas and Ohio. Those states accounted for 44 percent of the 2009 record harvest, USDA data show.

“Soybean crop conditions fell below last year, and that is a positive factor” for prices, said Greg Grow, the director of agribusiness for Archer Financial Services Inc. in Chicago. “The crop is getting smaller.”

Soybean futures for November delivery rose 3.5 cents, or 0.4 percent, to $9.545 a bushel on the Chicago Board of Trade. Earlier, the price reached $9.625, the highest level for the most-active contract since May 14. The oilseed has gained 5.8 percent this month.

U.S. inventories totaled 571 million bushels as of June 1, down 4.2 percent from a year earlier, the government said on June 30. That marked the lowest level since 2004. Reserves will fall to 175 million bushels, 5.4 percent less than June’s forecast, the USDA said last week.

“Soybean supplies are tight,” Grow said. “There is little margin for crop problems this year.”

Soybeans are the second-biggest U.S. crop, valued at $31.8 billion in 2008, government figures show. Corn is the biggest at $48.6 billion.

Soybeans Rise as Midwest Rain Reduced Area U.S. Farmers Planted

June 28 (Bloomberg) -- Soybeans rose, erasing an earlier decline, on speculation that two weeks of excessive rain have reduced the number of acres planted in the U.S., the biggest exporter of the oilseed.

Some Midwest fields got more than 9 inches (23 centimeters) of rain in the past two weeks, and Iowa, the biggest grower, is headed for the wettest June since at least 1895, T-Storm Weather in Chicago said in a report. The precipitation may mean fewer soybean acres than the 78.1 million forecast by the U.S. Department of Agriculture in March.

“There is a material loss in planted area” from northeast Nebraska to northwest Ohio, said Roy Huckabay, the executive vice president at the Linn Group, a brokerage in Chicago. “Soybean planting probably fell to 76.5 million acres.”

Soybean futures for November delivery gained 6 cents, or 0.7 percent, to $9.18 a bushel at 1:12 p.m. on the Chicago Board of Trade, after dropping 0.4 percent to $9.0825. The most-active contract slipped 2 percent last week, the eighth decline in nine weeks.

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.

Soybeans Rise as China Increases Cooking-Oil Imports From U.S.

June 11 (Bloomberg) -- Soybeans rose the most in a week after a government report showed increased U.S. sales of vegetable oil to China, the world’s largest consumer.

For the second straight day, U.S. exporters reported selling 40,000 metric tons of soybean oil to China for delivery before the end of September, the U.S. Department of Agriculture said. China halted shipments from Argentina, the world’s biggest supplier, in April as part of a dispute over antidumping measures. China bought 51,621 tons of U.S. soybean oil in 2009.

“China is buying soybean oil from the U.S. to offset lost supplies from Argentina,” said Greg Hunt, a market analyst for Fox Investments in Chicago. “This is a big change in world trade.”

Soybean futures for November delivery jumped 14.5 cents, or 1.6 percent, to $9.0925 a bushel on the Chicago Board of Trade, the biggest gain since June 3. The November contract replaced July futures as the most-active contract on July 9, when the price touched $8.8675, the lowest level since Oct. 6. The November contract rose 1 percent this week, the most since the week ended April 23.

Almost all China’s soybean oil has come from Argentina and Brazil, customs data show. Imports of crude bean-oil from the U.S. have been mostly barred because of a procedural dispute on safety certification. The USDA said last week it may take steps to certify the safety of domestic soybean oil to spur exports to China.

Busy Port

Qingdao Port, the biggest in China’s Shandong province, is congested by ships arriving to unload soybeans, a person with direct knowledge of the matter said. As many as nine more ships, each carrying about 60,000 metric tons of soybeans, are scheduled to unload this month, in addition to the two or three that have already been processed, said the person who declined to be identified because the information isn’t public. Normally, there would be five, he said.

Prices also rallied on speculation that farmers may not plant as much as expected in parts of the Midwest after rains during the past three weeks delayed fieldwork, said Charlie Sernatinger, a vice president for Fortis Clearing Americas LLC in Chicago. The last dates for planting soybeans without losing a portion of government-subsidized crop-insurance coverage occur next week in some Midwest states, Sernatinger said.

Some fields from Nebraska to Ohio received as much as four times the normal rain in the past two weeks, according to data from the High Plains Regional Climate Center at the University of Nebraska in Lincoln. Farmers told the USDA in March they planned to boost planted acreage to a record 78.098 million acres this year.

“The rains just will not stop” in the eastern soybean- growing states, Sernatinger said. “Now analysts are starting to scale back on their earlier calls that the beans would add a half million acres to the March intentions number.”

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.

Soy-Stockpile Estimate Cut by USDA on Increased Domestic Use

June 10 (Bloomberg) -- Soybean inventories in the U.S., the world’s largest grower and exporter, will be lower than forecast last month because of increased domestic demand, the government said.

Stockpiles will total 185 million bushels at the end of the marketing year on Aug. 31, compared with 138 million a year earlier, the U.S. Department of Agriculture said today in a report. Last month, the USDA forecast 190 million bushels. An increase in the estimate for crushings to 1.74 billion bushels from 1.735 billion in May accounted for the difference.

“Beans are hard to come by,” said Mike Zuzolo, the president of Global Commodity Analytics in Lafayette, Indiana. The government report “answered the question about whether beans are actually out there or if farmers are just holding onto them,” Zuzolo said.

Analysts expected inventories would drop to 183.6 million bushels, based on 28 estimates in a Bloomberg News survey. Stockpiles for the year ending Aug. 31, 2011, are seen at 360 million bushels, a decline from 365 million predicted in May, because of the revision to the 2010 forecast.

Soybean futures for July delivery rise 12.5 cents, or 1.3 percent, to $9.435 a bushel yesterday on the Chicago Board of Trade. The most-active contract has dropped 10 percent this year on forecasts for record crops in South America.

Soybeans Rally as U.S. May Cut Stockpile Forecast; Corn Gains

June 9 (Bloomberg) -- Soybeans rose for the first time in four sessions on speculation that inventories will be tighter than expected in the U.S., the world’s largest grower and exporter. Corn also rallied.

The U.S. Department of Agriculture probably will cut its forecast of domestic stockpiles by more than 3 percent in a report tomorrow, according the average of estimates in a Bloomberg survey of 28 analysts. Corn growers in the U.S., the world’s largest producer, may be withholding supplies after prices dropped yesterday to an eight-month low.

“Soybeans are running tight,” said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. “Even some smaller elevators are hanging on to supplies now. Given the crop conditions in corn and soybeans, farmers are holding a lot of grain right now.”

Soybean futures for July delivery rose 12.5 cents, or 1.3 percent, to $9.435 a bushel on the Chicago Board of Trade, the first gain since June 3. The price is down 12 percent in the past year, partly because of increased production in Argentina and Brazil, the largest exporters behind the U.S.

China, the world’s biggest consumer of cooking oils, purchased U.S. soybean oil, two traders with direct knowledge of the transaction, said today. China may have bought 100,000 metric tons of the oil, anticipating the U.S. will start certifying shipments to comply with Chinese regulations, said the traders, declining to be identified because the information isn’t public.

The U.S. government today confirmed sales of 40,000 tons of soybean oil to the Asian nation for delivery before Sept. 30

Corn futures for July delivery rose 1 cent, or 0.3 percent, to $3.3825 a bushel on the CBOT, the second straight gain. The price has slipped 18 percent this year, in part because of rising supplies.

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.

Soybean Futures Surge as Price Drop Discourages Farmer Sales

June 3 (Bloomberg) -- Soybeans rose the most since February after spot prices near a seven-week low discouraged farmers in the U.S. and South America from selling stockpiles.

The average U.S. cash-soybean price on May 25 fell to the lowest level since April 5, data from the Minneapolis Grain Exchange show. Processors and exporters in Brazil raised premiums for cash supplies yesterday, according to Sao Paulo- based trader Ary Oleofar Corretora de Mercadorias. Cash prices were also raised for soy-based animal feed in Argentina and Brazil, the biggest exporters of the commodity.

“Farmers are not selling and that is tightening supplies and raising bids from processors and exporters,” said Mario Balletto, a grain analyst for CitiGroup Global Markets Inc. in Chicago. “Prices need to get to higher levels to encourage farmers to sell more beans.”

Soybean futures for July delivery rose 22.5 cents, or 2.4 percent, to $9.55 a bushel on the Chicago Board of Trade, the biggest gain for a most-active contract since Feb. 10. The price is down 8.9 percent this year on forecasts for combined output in Brazil and Argentina to rise 36 percent to a record.

Prices also rose as wet weather threatened to delay planting and reduce the yield potential of crops in the U.S., the world’s top producer and exporter of the oilseed.

Two storms will bring as much as 3 inches (7.6 centimeters) of rain to fields from North Dakota to Georgia in the next week, MartellCropProjections.com said in a report. The soil is already saturated in some areas after receiving more than twice the normal rainfall in May. That has slowed plant emergence and early growth, the private forecaster said.

U.S. planting was 74 percent completed as of May 30, compared with 75 percent on average in the past five years, the U.S. Department of Agriculture said this week.

“Soybean planting has been delayed,” Balletto said. “The plants are small after ample rains.”

The U.S. soybean crop was valued at $31.8 billion last year, second only to corn at $48.6 billion, government figures show.

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.

Soybeans Decline as U.S. Exports Fall to Eight-Month Low

May 24 (Bloomberg) -- Soybeans fell, erasing an earlier gain, after a government report showed U.S. shipments of the oilseed fell last week to the lowest level since September.

The U.S. inspected 3.901 million bushels for export in the week ended May 20, down 57 percent from a week earlier, according to the Department of Agriculture. The euro plunged as much as 1.8 percent against the dollar after the Bank of Spain took over a failing lender. A stronger dollar makes U.S. commodities more expensive for foreign buyers.

“Soybean export-inspections were poor last week,” said Mario Balletto, a grains and oilseed analyst for CitiGroup Global Markets Inc. in Chicago. “People are concerned that demand may slow more quickly” as supplies from Brazil and Argentina, the biggest exporters after the U.S., become relatively cheaper because of the dollar’s rise.

Soybean futures for July delivery fell 0.5 cent to $9.405 a bushel on the Chicago Board of Trade, the eighth decline in nine sessions. Prices are down 5.9 percent this month.

Sales of U.S. soybeans from Sept. 1 to May 13 rose 14 percent to 38.119 million metric tons from 33.523 million in the year-earlier period, USDA data show.

Brazil and Argentina may harvest a combined 122 million tons this year, up 36 percent from a drought-reduced harvest of 89.8 million tons last year, the USDA said earlier this month.

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.

Soybeans Rise as Cheaper Supply May Boost U.S. Export Demand

May 20 (Bloomberg) -- Soybeans rose for the first time in more than a week on speculation that the lowest prices since March will boost demand for supplies from the U.S., the world’s largest grower and shipper.

Exporters in the U.S. sold 478,462 metric tons during the week ended May 13, double the average from the prior four weeks, the Department of Agriculture said today. Of the total, 60,000 tons were purchased by China, the world’s biggest importer. Argentina farmers are withholding newly harvested supplies in a bet the peso will plunge, boosting returns on exports, Rosario- based commodity trader Alabern, Fabrega y Cia said.

“Export sales were very good and constructive for prices,” said Anne Frick, a vice president of research for Prudential Bache Commodities LLC in New York. “Argentina and Brazil are not selling their crops, and that is boosting demand for U.S. supplies” at a time when importers usually shift to newly harvested soybeans from South America, Frick said.

Soybean futures for July delivery rose 5.5 cents, or 0.6 percent, to $9.44 a bushel on the Chicago Board of Trade, after losing 2.8 percent since May 11. The commodity touched $9.31 today, the lowest level for the most-active contract since March 31.

Annual consumption in China will increase by as much as 8 percent in the next three or four years as the livestock industry expands, boosting demand for high-protein feed, said Robert Day, the general manager of South China operations for Cargill Inc., the largest privately held U.S. company.

Chinese Imports

Soybean imports by China have outpaced forecasts for five years, Day said. The USDA this month raised its import estimate for the marketing year through Sept. 30 to 46 million tons from 43.5 million in April, and predicted 49 million tons for 2010- 2011.

The country “will continue to create more wealth for its citizens,” Day said at an industry meeting in Dongguan May 18. “It will continue to consume more meat, which means it will continue to need more grain and oilseed products.”

Combined soybean output in Brazil and Argentina, the biggest exporters behind the U.S., will jump 36 percent this year to a record 122 million tons, the USDA estimates.

Farmers in Argentina are storing their soybeans to preserve wealth as President Cristina Fernandez de Kirchner pursues a weak-peso policy intended to stimulate exports from the country, South America’s second-largest economy. The sales slowdown has boosted prices in Argentina and Brazil, making U.S. exports more competitive for shipments to Asia from ports in the Pacific Northwest, Frick said.

Stockpiling Supply

Argentine producers are stockpiling beans in special bags on their farms rather than selling the crops, according to Omar Barchetta, a vice-president of the Rosario-based Argentine Agrarian Federation farmers group.

“There was talk yesterday that as much as 250,000 tons of sales from South America were switched to the U.S.,” Frick said. “Prices will likely rise until we see increased exports from South America or cancelations of U.S. sales” from China, Frick said.

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

Soybean Futures Fall 0.2% to $9.375 a Bushel in Chicago

May 19 (Bloomberg) -- Soybeans for July delivery fell 0.2 percent to $9.375 a bushel on the Chicago Board of Trade at 7:12 a.m. Singapore time. Wheat for July delivery dropped 0.2 percent to $4.67 a bushel and July delivery corn was little changed at $3.595 a bushel.

Soybeans Fall as Report Shows Lower Feed, Cooking-Oil Demand

May 14 (Bloomberg) -- Soybeans fell, capping the first three-week decline since early February, after an industry report showed an unexpected decline in demand from U.S. processors in April.

Consumption fell 12 percent to 131.7 million bushels from March and dropped 1.8 percent from a year earlier, the National Oilseed Processors Association said in a report today. Traders surveyed by Bloomberg News expected 137.1 million, on average. Member firms reported inventories of cooking oil rose 3.8 percent to 2.81 billion pounds from a year earlier.

“Crush demand moved from near-record large in March to the low end of the five-year range in April,” Lewis Hagedorn, a commodity strategist for JPMorgan Chase & Co., said today in a note to clients. “Far lower implied oil demand during the month appears to signal a resumption of the trend of inventory builds witnessed most of this marketing year.”

Soybean futures for July delivery fell 11 cents, or 1.1 percent, to $9.535 a bushel on the Chicago Board of Trade. For the week, the price slipped 0.7 percent, the third straight decline. Soybeans are down 9.1 percent this year on forecasts of record production in Brazil and Argentina, the two biggest exporters after the U.S.

Prices also fell on concern that Europe’s debt crisis will worsen, hampering the global economy and curbing demand for soy- based foods, animal feed and cooking oil.

Euro Breakup

Former Federal Reserve Chairman Paul Volker said Greece’s fiscal woes may cause the breakup of the euro area after an unprecedented $1 trillion bailout. Global equity markets fell and the Reuters/Jefferies CRB Index of 19 commodities slipped to a three-month low.

“The European crisis has the potential to slow demand in China,” the biggest buyer of soybeans, said Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis. “Traders are nervous about the health of the world economy.”

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.

Soybeans Fall as Big South America Crops May Slow U.S. Exports

May 13 (Bloomberg) -- Soybeans fell for a second straight session on speculation that record harvests in South America will reduce demand for U.S. supplies.

Brazil and Argentina, the biggest exporters after the U.S., will produce a combined 122 million metric tons (4.48 billion bushels) this year, up 36 percent from last year’s drought- reduced harvest, the Department of Agriculture said this week. World inventories were projected to rise 48 percent to a record 63.8 million tons.

“The record crops in Brazil and Argentina will hang over the market longer than people expect,” said Chad Henderson, an analyst for Prime Agricultural Consultants Inc. in Brookfield, Wisconsin. “There’s no reason for importing nations to rush in and buy.”

Soybean futures for July delivery fell 1 cent, or 0.1 percent, to $9.645 a bushel on the Chicago Board of Trade. The commodity has fallen 8 percent this year.

Prices also declined on expectations that U.S. farmers will be able to accelerate planting of the country’s second-biggest crop, Henderson said.

Warm, dry weather will return to the U.S. Midwest by May 15, firming soil to support seeding equipment after most areas received about twice the normal rainfall this week, Chicago- based T-Storm Weather LLC said today in a report to clients. About 30 percent of the soybean crop was planted as of May 10, up from 15 percent a week earlier and 13 percent a year earlier, according to the USDA.

“Weather conditions will improve and that should increase planting progress,” Henderson said.

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

Soybeans Rise as Dollar Drop Boosts Investment Appeal of Crop

May 10 (Bloomberg) -- Soybeans rose for a second session as a package of rescue loans in Europe eroded the value of the dollar and eased concern that economic growth will slow, boosting prospects for exports of the U.S. crop.

U.S. stocks surged the most in 12 months and the dollar plunged against a basket of six major currencies after the European Union agreed to almost $1 trillion in loans to prevent a global debt crisis. The Reuters/Jefferies CRB Index of 19 raw materials gained 1.6 percent to 265.44, its biggest increase since March 29.

“The dollar’s retreat is a sign that the fears of a global collapse have abated,” said Greg Grow, the director of agribusiness for Archer Financial Services in Chicago. The European bailout revived “the equity and commodity markets and reduced the concerns about an economic slowdown,” he said.

Soybean futures for July delivery rose 1 cent, or 0.1 percent, to $9.61 a bushel on the Chicago Board of Trade, capping the first two-day advance this month. The commodity fell 3.9 percent last week, the biggest weekly decline since the end of January on speculation the Greek crisis would reduce demand for the oilseed.

Prices also rose after government reports showed increased demand for U.S. supplies from China, the world’s biggest buyer of soybeans and second-largest consumer of corn, Grow said.

Chinese Demand

Soybean imports by China climbed 10 percent to 15.2 million tons in the first four months from a year earlier, according to customs figures. Imports in April were 4.2 million tons, up from 3.7 million tons a year earlier.

Soybean exports for delivery before Sept. 1 doubled in the week ending April 29 from the previous week and were 47 percent above the average of the prior four weeks, U.S. Department of Agriculture data show. China bought 180,000 tons for this year and another 168,000 tons for delivery after Sept. 1.

“Demand is improving,” because prices are at the low end of the average the past three years, Grow said.

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

Soybean Futures Fall on Concern Greek Debt Crisis May Spread

May 5 (Bloomberg) -- Soybeans fell on concern that the Greek debt crisis will spread in Europe, undermining the global economic recovery and reducing commodity demand.

The Reuters/Jefferies CRB Index of 19 raw materials declined, heading for the biggest-two day drop since February. The euro plunged to a 14-month low against the dollar, and global equities slumped. European Central Bank council member Axel Weber said Greece’s fiscal crisis is threatening “grave contagion effects” in the region.

“The Greek situation has pushed the dollar higher than people expected, and that brought out selling by speculators,” said Gregg Hunt, a market analyst at Fox Investments in Chicago. “It all boils down to uncertainty about the final impact that the European debt crisis will have” on the global recovery, he said.

Soybean futures for July delivery dropped 9 cents, or 0.9 percent, to $9.78 a bushel on the Chicago Board of Trade. Yesterday, the price touched $9.74, the lowest level for a most- active contract since April 15. The oilseed has dropped 6.7 percent this year.

Soybeans are the second-biggest U.S. crop, valued at $31.8 billion last year, behind corn at $48.6 billion, government figures show.

Soybeans Rise on Speculation China Oilseed Demand to Increase

April 29 (Bloomberg) --Soybeans rose for a second day on speculation that China’s surging economy will bolster demand for supplies from the U.S., the world’s largest producer and exporter.

China bought 120,000 metric tons of the oilseed for delivery before Sept. 1, the U.S. Department of Agriculture said today. In a separate report, the USDA said the Asian nation purchased 691,000 tons for delivery in the following year. Yesterday, the department said China had made its largest corn purchase in nine years.

“Another sale of soybeans to China is supporting the rally,” said Bill Nelson, a senior economist for Doane Agricultural Services Co. in St. Louis. “The market is also getting a bullish kick from the Chinese purchase of U.S. corn” because it suggests demand is outpacing production, Nelson said.

Soybean futures for July delivery rose 2.5 cents, or 0.3 percent, to $9.96 a bushel on the Chicago Board of Trade. On April 26, the most-active contract touched $10.20, the highest price since Jan. 11.

China’s top grain administrator said last week that stockpiles of grain and cooking oil need to be increased to stabilize domestic prices. China’s economy in the first quarter expanded at the fastest pace in almost three years.

Soybeans for delivery in November, after the harvest, rose on speculation that the record pace of U.S. corn planting will result in farmers sowing more of the grain, and fewer acres with soybeans, Nelson said.

Planting Outlook

The USDA said March 30 that farmers intend to plant soybeans on a record 78.098 million acres this year, up 0.8 percent from 77.451 million last year.

“Farmers probably will plant fewer acres of soybeans” than the USDA said in March, Nelson said. “The fast pace of corn plantings in giving soybeans a boost.”

About 50 percent of the corn crop was seeded as of April 25, compared with 19 percent a week earlier and 20 percent last year, the USDA said this week. Since 2000, when more than 50 percent of the crop was planted by May 1, farmers reduced soybean sowings, Nelson said.

In 2000, 2004, 2005 and 2006, when corn plantings topped 50 percent at this stage of the season, the USDA reduced its estimate of soybean plantings on average about 900,000 acres from a March survey of farmers to its June update, Nelson said.

Soybean futures for November delivery rose 5 cents, or 0.5 percent, to $9.705, the second straight gain. The contract has risen 5.7 percent this month.

Soybeans are the second-biggest U.S. crop, behind corn, with a 2009 value of $31.8 billion, government figures show.

Soybeans Fall From 3-Month High on Lower U.S. Exports

April 26 (Bloomberg) -- Soybeans fell from a three-month high on signs that importers are slowing shipments from the U.S., the biggest exporter.

U.S. officials inspected 8.029 million bushels for export in the week ended April 22, less than half the 16.362 million a week earlier, data from the Department of Agriculture show. China accounted for 30 percent of the total, down from 44 percent a week earlier, the USDA said. The combined output in Brazil and Argentina, the biggest exporters after the U.S., will jump 35 percent, the USDA said.

“The drop in U.S. exports was disappointing,” said Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis. “Chinese demand for U.S. soybeans may be shifting to newly harvested crops in South America.”

Soybean futures for July delivery fell 1 cent, or 0.1 percent, to $10.09 a bushel on the Chicago Board of Trade. Earlier, the price touched $10.20, the highest level since Jan. 11. Before today, the most-active futures rose 7.3 percent this month on increased Chinese demand for U.S. oilseeds after farmers in South America withheld supplies for higher prices.

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

India Palm Oil Imports to Ebb on China, Argentina Row

April 25 (Bloomberg) -- Palm oil imports by India, the largest buyer, may drop this year as buyers switch to soybean oil to profit from China’s ban on shipments of the commodity from Argentina, the biggest global supplier.

Purchases may fall to 6.7 million metric tons in the year to Sept. 30, from 6.9 million tons a year ago, Thomas Mielke, executive director of Oil World, said in an interview in Dubai yesterday. Soybean oil shipments may rise to as much as 1.5 million tons from 1.06 million tons a year ago, he said.

Lower purchases of palm oil by India, which overtook China as the top buyer of the commodity in 2009, may pressure prices that touched an 11-week low on April 19 in Malaysia. Sales from Malaysia to the South Asian country slumped 81 percent in the first 20 days of April compared with the same period in March, surveyor Societe Generale de Surveillance said last week.

“The price of soybean oil is attractive because of the lack of Chinese buying,” he said. “That’s impacting palm oil as India is buying less.”

The price-premium that soybean oil commands over palm oil declined 15 percent to $81 a ton on April 23, according to data compiled by Bloomberg. The premium has narrowed from a 12-month average of $131 a ton, making soybean oil more affordable.

“India has stepped into the space created by very competitive Argentinean soya oil,” Dorab Mistry, a director at Godrej International Ltd., said in a copy of his speech prepared for delivery the conference in Dubai. Godrej is one of India’s biggest buyer of vegetable oils.

‘Step Up’

Soybean-oil purchases by India may reach 400,000 to 450,000 tons in the quarter ending June, up from 330,000 tons a year ago, Mielke said, as the country “steps up” imports.

Palm oil for July delivery rose 2 percent to 2,540 ringgit ($797) a metric ton on the Malaysia Derivative Exchange on April 23. The vegetable oil soared 57 percent last year on demand from India and China, the biggest buyers. July-delivery soybean oil gained 0.8 percent to 39.33 cents a pound in Chicago.

China, the largest user of soybean oil, suspended purchases of the commodity from Argentina this month on quality standards. Argentina supplies about three-quarters of China’s demand.

The Asian nation can’t turn to Brazil or the U.S. to make up for a lack of Argentine supplies, Argentina’s farm secretary Lorenzo Basso said April 20 in a telephone interview from Buenos Aires. Prices in the U.S. are too high and Brazil does not have enough capacity to cover China’s demand, he said.

The U.S. is the largest exporter of soybeans. Brazil and Argentina are the second- and third-biggest growers.

India’s total vegetable-oils purchases may reach a record 9 million tons in the year to Oct. 31, Mistry said in an interview on April 7. Imports were 8.66 million tons year last year, with palm oil accounting for more than 80 percent of the total.

Soybeans Rise as China May Allow Yuan Gain, Boosting Imports

April 7 (Bloomberg) -- Soybeans rose to a one-week high on speculation that China, the world’s biggest importer, will allow its currency to climb against the dollar, enhancing the allure of imports from the U.S.

The Chinese yuan is trading close to the highest level in 11 weeks. The government may allow the currency to appreciate to limit the rate of inflation, which reached a 16-month high in February. U.S. Treasury Secretary Timothy F. Geithner will meet Chinese Vice Premier Wang Qishan tomorrow in Beijing.

“There’s some buying tied to speculation that China will allow its currency to rise against the dollar and boost U.S. exports,” said Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis.

Soybean futures for May delivery rose 8 cents, or 0.8 percent, to $9.525 a bushel on the Chicago Board of Trade. Earlier, the price reached $9.57, the highest level for a most- active contract since March 31. The commodity has dropped 9.2 percent this year as rain improved prospects for record crops in Brazil and Argentina.

Processors in China bought about 15 cargoes of soybeans last week as profit margins increased, three industry executives said. Orders averaged three to five cargoes a week in March, one executive said.

Latin American will supply about half of last week’s purchases for shipment from May 1 to Sept. 30 with the rest from the U.S., the executives said.

Imports Climb

China may increase imports 3.4 percent to 42.5 million metric tons in the 12 months ending Sept. 30, the U.S. Department of Agriculture said last month. Imports have more than doubled in the past six years to meet domestic demand for animal feed and vegetable oil, USDA data show.

Profit from processing imports has risen to more than 200 yuan ($29) a ton after domestic soybean-oil prices gained and the cost of beans from overseas fell, the China National Grain and Oils Information Center said today.

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

Soybeans Rise on Speculation Demand Will Cut Global Inventories

April 6 (Bloomberg) -- Soybeans rose the most in a week on speculation that an end to the global recession will boost demand for the oilseed to make food and animal feed.

Economies will recover at various speeds, led by China and India, the Organization for Economic Cooperation and Development said. The Asian countries are the world’s biggest consumers of vegetable oil made from soybeans. U.S. payrolls in March rose the most since March 2007, signaling a rebound in the job market.

“The world recovery is going to increase demand for soybeans more than people expect,” said Tim Hannagan, an analyst at PFG Best Inc. in Chicago. “People don’t want to be sellers before the start of the U.S. planting and growing seasons.”

Soybean futures for May delivery gained 8.5 cents, or 0.9 percent, to $9.445 a bushel on the Chicago Board of Trade, the biggest increase since March 29. The commodity has dropped 9.9 percent this year.

On March 31, the price fell to $9.305, the lowest level for a most-active contract since March 16.

“We held above last week’s low the past two days and that encouraged some short-covering” by speculators unwinding bets on lower prices, Hannagan said.

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