Increased demand for US supply of soybeans increases its price to a one-week high

Increased demand for US supply of soybeans boosted the price of futures to a one-week high.

On the Chicago Board of Trade soybeans contracts for settlement in January rose 0.4% to 12.97 per bushel, which is the highest level for most actively traded futures for one week. Yesterday, on the same Chicago Board of Trade, soybeans futures for settlement in January rose by 0.78% to $12.8438 per bushel by 13:44 GMT. Prices held in range between day’s high and low of $12.8463 and $12.7563 per bushel respectively.

According to data of the US Department of Agriculture (USDA), cited by Bloomberg, US export sales of soybeans jumped to 1.38 million metric tons in the week ended Nov. 14 from 909,122 tons a week earlier and 84% of the total amount was bought by the worlds largest soybeans importer, China. The price of the soybeans decreased 8.2 percent this year, because of the estimates of USDA for record high global production, which is expected to reach an unprecedented 283.5 million tons at the end of the year. This is 2.2 million above last month’s forecast and 16.3 million tons above last year’s harvest.

Meanwhile, earlier in the week soybeans were pressured after the US Department of Agriculture said that American farmers had collected 95% of the crop as of November 17, near the five-year average of 96% and slightly below last year’s 98% during the comparable week.The USDA said on Monday that the U.S. harvest accelerated by 7% last week and remained above the average. As of November 17, 91% of the crop was collected, compared to the five-year average of 86% and last year’s 99% during the comparable period.

Corn and soybeans drew support on outlook for unfavorable weather in some key growing areas. DTN reported on November 20 that rainfall in the southern parts of the Midwest will cause delays to the final harvest stage in the end of the week, followed by cold and dry weather early next week which would ease field work.

In Brazil, scattered thunderstorms will maintain soil moisture ample for early development of corn and soybeans but will also cause planting delays and some southern areas may see flooding, DTN said. In South Africa, scattered showers and thundershowers continued to maintain adequate soil moisture to early planted corn and sugarcane in the country’s Maize Triangle region, but also slowed planting.

The US is the second largest exporter of soybeans in the world.

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