Soybean prices in Chicago rose Monday after China, the largest foreign buyer of U.S. supplies, made a purchase of more than 100,000 tons for the second time this month.
U.S. exporters reported sales of 118,000 metric tons of soybeans to China, the U.S. Department of Agriculture said. Delivery is for the marketing year that began Sept. 1. U.S. exporters also sold 135,000 metric tons to China on Dec. 14.
“Those who said demand would go away because Chinese buyers defaulted on payments earlier were wrong,” said Troy Vetterkind, a grain trader with e-Hedger in Chicago. U.S. exporters will benefit from strong Chinese demand until Brazil starts selling newly harvested crops in April and May, he said.
Soybean futures for March delivery rose 4.5 cents to $5.485 a bushel on the Chicago Board of Trade. A futures contract is an agreement to buy or sell a commodity at a specified price and date.
Soybeans are down 29 percent from a year ago and have dropped 48 percent from a 15-year high of $10.64 a bushel on April 5.
Source: Omaha World-Herald