Aug. 13 (Bloomberg) -- Soybeans rose for a second day in Chicago, adding to the biggest advance in 13 months after the U.S. Department of Agriculture lowered its estimate for domestic production of the oilseed.
Farmers in the U.S., the biggest soybean grower, will gather 3.26 billion bushels this year following excess rain in May and June that reduced acreage and hurt yields, the USDA said yesterday. That compared with the 3.42 billion bushels expected last month.
China, the leading global soybean importer, is buying the oilseed in record-high amounts at the same time the USDA is forecasting a smaller crop. The agency also cut estimates for U.S. corn yields and stocks before next year’s harvest because of rain.
"The USDA numbers in the end showed a decline of the yield estimates for corn and soybeans, surprising that market," Paris-based farm adviser Agritel wrote in a report. "At the same time, market operators continue to see good export business, like the recent sales to China."
Soybeans for delivery in November added 0.8 percent to $12.35 a bushel at 7:55 a.m. on the Chicago Board of Trade. Futures rallied 3.6 percent yesterday, the biggest gain since June 25, 2012.
Exporters sold 713,000 metric tons of soybeans to China for delivery in the 12 months starting Sept. 1, the USDA said yesterday. China imported a record 7.2 million tons in July, customs figures show, and the USDA predicts the country will import 69 million tons in the 2013-14 season, from 59 million in the year that ends Sept. 30.
"We’re seeing some follow-through price action" after the USDA report, said Graydon Chong, an analyst at Rabobank International in Sydney. "We’re seeing a bullish tone come back on to the market."
U.S. corn production may reach 13.76 billion bushels, less than the 13.95 billion forecast in July, the USDA said. Even with reduced yield prospects, domestic output will be a record.
Corn for delivery in December rose 0.9 percent to $4.68 a bushel. Prices yesterday reached $4.465, the lowest since September 2010, before closing 2.4 percent higher at $4.64.
Wheat for delivery in December advanced 0.7 percent to $6.535 a bushel. Milling wheat for delivery in November traded on NYSE Liffe in Paris gained 0.6 percent to 184.25 euros ($244.97) a ton.
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