Soybeans Rise in Chicago and Dalian on Sustained Chinese Demand

By Luzi Ann Javier

Dec. 7 (Bloomberg) -- Soybeans rallied in Chicago as the dollar weakened, boosting the appeal of U.S. supplies, and on sustained demand from China. Dalian soybeans climbed to the highest level since September 2008.

The Dollar Index, which tracks the value of the greenback against six major currencies, fell as much as 0.6 percent after gaining 1.7 percent on Dec. 4. U.S. exporters sold 232,000 tons of beans to China for delivery in the year started Sept. 1, the Department of Agriculture said Dec. 4.

“A slightly weaker dollar is providing some strength” to the grain and oilseed markets, Toby Hassall, a research analyst at CWA Global Markets Pty, said from Sydney. The U.S. exports data “was another indication that Chinese demand for soybeans is strong,” he said.

Soybeans for January delivery added as much as 1.7 percent to $10.6075 a bushel on the Chicago Board of Trade and traded at $10.5975 at 2:33 p.m. Singapore time.

China’s soybean purchases in December could exceed June’s record of 4.71 million tons, the China National Grain & Oils Information Center said Dec. 4. Soybeans have climbed 14 percent since the end of September in Chicago, with futures reaching the highest level in more than five months on Dec. 1.

China relies mostly on imports to meet its soybean needs, with consumption estimated at more than 54 million tons this year and domestic output at 14.5 million tons, according to the U.S. Department of Agriculture.

Dalian High

Soybeans for September delivery on the Dalian Commodity Exchange added as much as 2.8 percent to 4,128 yuan ($605) a ton. The contract was at 4,099 yuan at the 1:42 p.m. local time.

Wheat for March delivery in Chicago advanced as much as 0.8 percent to $5.625 a bushel and last traded 0.6 percent higher at $5.6125. The contract slumped 2.4 percent at close on Dec. 4 as the dollar gained.

Areas planted to winter-wheat in India, the world’s second- largest grower, expanded to 16.73 million hectares as of Dec. 3, from 16.24 million hectares in the year-ago period, the farm ministry said Dec. 4. Output in Pakistan may rise to 25 million tons next year, from 24 million tons this year, said Qadir Baksh Baluch, spokesman for the Food and Agriculture Ministry.

“Planting intentions are hindering price action,” Jonathan Barratt, managing director at Commodity Broking Services Pty, said in Sydney.

Corn for March delivery rose as much as 0.9 percent to $3.92 a bushel after slumping 7 percent in the previous four sessions. It traded at $3.925 a bushel, up 0.9 percent at 2:34 p.m. Singapore time.

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