Soybeans Gain Before USDA Report that May Lower Stocks Outlook

August 12, 2013 03:57 AM
 

Aug. 12 (Bloomberg) -- Soybeans rose in Chicago before a U.S. Department of Agriculture report today that may show a reduced outlook for stockpiles of the oilseed before the 2014 harvest on sustained demand from leading importer China.

Traders expect the USDA to cut its outlook for U.S. soybean inventories at the end of the 2013-14 season by about 10 percent from 295 million bushels predicted in July, said Arnaud Saulais, a broker at Starsupply Commodity Brokers in Nyon, Switzerland.

"Supportive elements come mainly from the balance-sheet tension at the close of the marketing year and the Chinese appetite that isn’t waning, with more than 7 million tons imported last month," Paris-based farm adviser Agritel wrote in a report today.

Soybeans for delivery in November climbed 1 percent to $11.9425 a bushel by 7:37 a.m. on the Chicago Board of Trade. Prices dropped 15 percent this year, the sixth-worth performer in the S&P GSCI Commodity Index.

China imported 7.2 million metric tons of soybeans in July, according to customs figures. That’s up from 6.93 million tons in June and compares with 5.87 million tons in a year earlier.

Wheat for delivery in December fell 0.3 percent to $6.45 a bushel. In the prior session, prices reached $6.435, the lowest since June 18, 2012. Milling wheat for delivery in November traded on NYSE Liffe in Paris fell 0.3 percent to 182.50 euros ($242.48) a ton, the lowest since December 2011.

France’s wheat harvest, the European Union’s biggest, will climb 1.7 percent to 36.1 million tons from 2012, the Agriculture Ministry forecast, raising its outlook from 35.9 million tons a month ago on better-than-expected yields.

Corn for delivery in December was unchanged at $4.5325 a bushel in Chicago after sliding as far as $4.52, the prior session’s low and the lowest since September 2010.

 

--With assistance from Phoebe Sedgman in Melbourne. Editors: Dan Weeks, Claudia Carpenter.

 

To contact the reporter on this story: Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net

 

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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