Soybeans Rise as Supply Seen Tight Before South America Harvest

February 13, 2014 02:35 AM
Soybeans Rise as Supply Seen Tight Before South America Harvest

Soybeans rose on speculation sustained demand for U.S. shipments of the oilseed will drain global supplies before the South American harvest picks up.

U.S. export sales may be between 100,000 metric tons and 650,000 tons in the week ended Feb. 6, according to a survey of five analysts by Bloomberg News. That compares with 576,985 tons a week earlier, U.S. Department of Agriculture data show. The USDA is scheduled to release its sales report today.

"Supplies of old-crop soybeans remain historically tight," Todd Hultman, a grain analyst at DTN, wrote in a report today. "Very soon, we may start to see the bullish old-crop situation start to lift new-crop prices."

Soybeans for May delivery rose 0.6 percent to $13.175 a bushel on the Chicago Board of Trade by 7:06 a.m. Prices have gained 1.9 percent this year after an 8.3 percent drop in 2013.

"Tight old crop stocks remain supportive," Profarmer Australia, a unit of NZX Ltd., wrote in a weekly report. "The impending South American harvest, Canadian supplies becoming available and the large premium soybeans currently demand over corn are bearish longer term."

The USDA is scheduled to publish crop export sales at 8:30 a.m. in Washington.

U.S. soybean reserves at the end of August will be 150 million bushels, unchanged from a January estimate, the USDA said Feb. 10. The soybean crop in Brazil’s Parana state is 20 percent harvested, state agriculture and supply secretariat Deral said yesterday. Brazil is the world’s top shipper ahead of the U.S.

Wheat for March delivery rose 0.3 percent to $5.89 a bushel in Chicago and corn for delivery the same month gained 0.2 percent to $4.4075 a bushel. Milling wheat for November delivery traded on NYSE Liffe in Paris fell 0.1 percent to 185.50 euros ($253.52) a ton.

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