Soybeans Rise in Chicago After Plunge in Prices Lures Importers

By Luzi Ann Javier

July 14 (Bloomberg) -- Soybean futures in Chicago gained on speculation importers including China, the world’s biggest buyer, will increase purchases after the oilseed plunged to the lowest since March. Corn also advanced.

Soybeans dropped 21 percent on the Chicago Board of Trade in the two months through yesterday as the U.S. Department of Agriculture raised its output forecast for the world’s biggest grower and exporter.

Some importers, including China, “are appearing to buy cheaper U.S. soybeans,” Tetsu Emori, a commodity fund manager with Astmax Ltd. in Tokyo, said by phone today.

Soybeans for November delivery, after the U.S. harvest, gained as much as 0.8 percent to $9.19 a bushel in after-hours electronic trading. The contract was at $9.18 a bushel at 10:13 a.m. Singapore time.

The U.S. inspected 10.9 million bushels of soybeans slated for export in the week ending July 9, 15 percent higher than a year earlier, according to data from the Department of Agriculture released yesterday. That takes total shipments in the marketing year ending Aug. 31 to 1.16 million tons, 11 percent higher than last year, the USDA said.

Corn for December delivery added as much as 1 percent to $3.43 a bushel, and last traded at $3.42 a bushel. The most- active contract has fallen 21 percent in the two months through yesterday. “Corn has been oversold,” Emori said.

Corn’s 14-day relative strength index, a gauge of momentum, has been less than 30 since June 30, a signal some investors use to indicate prices may be about to rise.

The USDA reported that the volume of corn inspected for export for the week ending July 9 climbed to 38.8 million bushels, 36 percent higher than a year ago. “That’s one of the factors holding up prices at the moment,” Emori said.

Wheat for September delivery dropped 0.2 percent to $5.4150 a bushel after rebounding 4.6 percent yesterday on speculation U.S. farmers would withhold supplies after a 20 percent drop in prices since the start of June.

To contact the reporter on this story: Luzi Ann Javier in Singapore at javier@bloomberg.net