Soybeans rose for a second day in Chicago as demand for U.S. exports increased and palm oil touched an eight-month high on concern production in Malaysia will start falling next month.
U.S. exporters shipped 83.6 million bushels of soybeans overseas in the week to Oct. 24, the second-most ever, the U.S. Department of Agriculture said Oct. 28. Palm oil, an alternative to soybean oil used in foods and fuel, climbed to the highest since February in Kuala Lumpur as rain may disrupt output.
"We’re continuing to see strong demand for U.S. soybeans," Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said by phone from Sydney. "That factor remains supportive for prices. The strength that we’re seeing in Malaysian palm oil" also bolstered soybeans, he said.
Soybeans for delivery in January added 0.6 percent to $12.7775 a bushel by 7:24 a.m. on the Chicago Board of Trade. Prices slid 0.4 percent in October, headed for a second monthly loss. The oilseed fell 9.3 percent this year on expectations that U.S. output will rebound after 2012’s drought and Brazil’s crop will climb to a record, according to USDA estimates.
Palm oil for delivery in January closed at 2,547 ringgit ($809) a metric ton on the Bursa Malaysia Derivatives, the highest settlement since Feb. 20 for a most-active contract. Prices are heading for the biggest monthly increase since December 2010.
Wheat for delivery in December advanced 0.4 percent to $6.8375 a bushel in Chicago, while corn for the same delivery month rose 0.5 percent to $4.34 a bushel after yesterday touching the lowest level since August 2010. Milling wheat for delivery in January traded on NYSE Liffe in Paris climbed 0.6 percent to 202 euros ($277) a ton.