Soybeans Rise First Time in Two-Weeks on Crude Oil Gain, China

By William Bi

Dec. 8 (Bloomberg) -- Soybeans futures gained the most in two weeks on speculation a rise in crude oil prices may spark a rebound in agricultural commodities and on expectation that lower prices may spur buying from China. Corn also gained.

Crude oil in New York jumped 5 percent, the first gain in seven days as producers pledged to cut production. Soybean’s 10- day Relative Strength Index fell to 14 on Dec. 5. A measure below 30 suggests the commodity is oversold and poised to rise. U.S. exporters sold 110,000 metric tons of soybeans to China, the U.S. Department of Agriculture said.

“Crude oil is on a rebound, so the sellers may be taking cues to take their profits,” said Nie Ben, manager at Shanghai Continent Futures Co., by telephone from Dalian. “Demand for soybean oil and meal in China hasn’t been weakened.”

Soybeans for January delivery rose 1.9 percent to $7.98 at 11:28 a.m. in Beijing, in after-hour electronic trading on the Chicago Board of Trade. The commodity gained as much as 2.1 percent in early trading today after losing 3.4 percent in the last regular trading session on Dec. 5.

On the Dalian Commodity Exchange, May-delivery soybeans rose as much as 1.8 percent to 2,959 yuan ($430) a ton, and ended the morning session at 2,944 yuan.

March-delivery corn on the Chicago exchange jumped as much as 2.1 percent to $3.1575 a bushel, and last traded at $3.155. China is a net exporter of corn.

Wheat for March delivery rose as much as 8 cents, or 1.7 percent, to $4.835 a bushel and last traded at $4.8175.

January-delivery rough rice gained as much as 6.5 cents, or 0.5 percent, to $14.195 per 100 pounds.

To contact the reporter on this story: William Bi in Beijing at wbi@bloomberg.net