By Luzi Ann Javier
Aug. 12 (Bloomberg) -- Soybean futures rose for a second day on speculation demand from importers including China, the world’s biggest, will be sustained, draining supplies in the U.S.
China purchased 110,000 metric tons of U.S. soybeans for delivery in the marketing year that begins Sept. 1, the U.S. Department of Agriculture said yesterday. The Asian nation’s imports of the oilseed from all origins surged 28 percent to 26.5 million tons in the first seven months of the year, data from the Beijing-based customs office showed.
“There’s probably more upside” for prices of soybeans and all grains, Peter McGuire, managing director of CWA World Markets Pty, said by phone from Sydney. “I haven’t seen any demand destruction. I think the whole view of the market is quite strong at the moment.”
Soybeans for November delivery gained 1.1 percent to $10.50 a bushel in after-hours electronic trading on the Chicago Board of Trade at 10:34 a.m. Singapore time.
China’s monthly soybean imports may be less than 3 million tons this month and the next, Li Jianlei, an analyst at Cofco Futures Co., said yesterday.
The USDA may lower its estimate for soybean stockpiles at Aug. 31, before the start of harvest, to 103.75 million bushels, from a July projection of 110 million bushels, according to the average forecast of 12 analysts surveyed by Bloomberg News.
The estimate for next year’s ending inventory may be cut to 221.06 million bushels, from 250 million bushels last month, according to the average estimate of 16 analysts.
The USDA is scheduled to release its new estimates for global and U.S. supplies of soybeans, corn and wheat at 8:30 a.m. Washington time.
Dalian Soybeans
May-delivery soybeans jumped as much as 3 percent to 3,882 yuan ($568) on the Dalian Commodity Exchange before trading at 3,857 yuan, up 2.3 percent at 10:58 a.m. Singapore time.
Wheat for December delivery rose as much as 0.2 percent to $5.1375 a bushel, and was at $513.25 a bushel at 10:39 a.m. Singapore time.
Russia’s wheat exports will likely decline this month because domestic prices are too high to make shipments profitable, Dmitry Rylko, director of the Institute for Agriculture Market Studies, said yesterday. Russia is the world’s second-largest exporter of the grain.
Wheat output has reached 34.1 million tons so far this season, from 36.6 million tons a year, Russia’s Agriculture Ministry said.
Corn for December delivery fell 0.1 percent to $3.3075 a bushel at 10:44 a.m. Singapore time.
To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net
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