U.S. Soybean Prices Rise on Export Sales; Corn Mixed
12 February 2016 - 10:08AM
Dow Jones News
By Jesse Newman
CHICAGO--Prices of U.S. soybean futures jumped on Thursday
because of strong export sales and short-covering by investors.
Wheat prices closed lower, while those for corn were mixed.
Soybean rose off a more-than-two-month low following a report by
the U.S. Department of Agriculture that showed net soybean sales
last week totaled 601,000 metric tons for delivery in the 2015-16
and 2016-17 seasons, which came in at the high end of analysts'
expectations.
The solid sales figure helped prompt a round of short-covering
that bolstered the soybean market, analysts said, as some investors
closed out of bearish bets on the oilseeds amid hopes for a
prolonged uptick in demand. A weaker U.S. dollar also supported
prices for the crop.
"Soybean prices had gotten so cheap, maybe [traders thought]
there was not a lot of downside left," said Bill Nelson, a senior
economist with agricultural-research firm Doane Advisory Services
in St. Louis. He added that rising prices for soybean oil, a
vegetable oil made from the crop, also shored up the soybean
market. Lower-than-expected production and inventories of soyoil's
rival, palm oil, in Malaysia pushed soyoil futures 1.9% higher on
Thursday.
Soybean futures for March rose 11 1/4 cents, or 1.3%, to $8.73
1/2 a bushel at the Chicago Board of Trade. Prices for the oilseeds
fell to the lowest settlement price since Nov. 20 on Wednesday.
Wheat prices fell, as short-covering in that market tapered off.
Prices for the grain had risen earlier in the day as investors
exited bets on lower prices, but massive domestic and world
stockpiles plus sluggish demand for U.S. supplies ultimately
weighed on the market. "Export sales are pretty ho hum" for wheat,
said Mr. Nelson. CBOT March wheat shed 3 cents, or 0.7%, to $4.58
1/4 a bushel.
Meanwhile, corn prices were mixed, with nearby futures contracts
unchanged while later-dated contracts slipped due to disappointing
export sales and falling prices for crude oil. CBOT March corn were
flat. May-dated futures shed 1/4 cent, or 0.1%, to $3.65 a
bushel.
Write to Jesse Newman at jesse.newman@wsj.com
(END) Dow Jones Newswires
February 11, 2016 17:53 ET (22:53 GMT)
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