Global Crop Supply Fears Send Soybeans to Highest in Six Years

Soybeans traded at the highest level in more than six years as increasing demand from top importer China and dry weather in the major producing areas of South America spur growing concerns over global supplies.

Prices have climbed more than 40% since March after China started snapping up cargoes to feed a massive increase in hog numbers as the country recovers from African swine fever. Now the development of southern hemisphere crops in Brazil and Argentina has been threatened for weeks by lack of rain. Brazil is the biggest grower of soybeans and Argentina the top exporter of soybean oil.

Imports by China may reach 100 million tons next year and grow 3% to 4% annually over the next decade, according to the U.S. Soybean Export Council. The U.S. and Brazil have already sold a large part of their crops for shipment in coming months. Meanwhile, a stronger Chinese currency and a weaker dollar are only increasing the appeal of farm imports for the Asian country.

Corn has also been rallying on expectations for record Chinese imports and because of the dry weather in South America, but there are concerns over the impact of the latest U.S. lockdowns on demand for corn ethanol.

  • China Buying Spree Drives Soybean Futures to a Six-Year High
  • Going With the Grains, Prices Keep Climbing
  • Soy Crop Conditions Deteriorate in Brazil’s Second Largest State
  • China Soy Imports May Reach Record 100m Tons Next Year: USSEC
  • South America Corn Outlooks May Be Optimistic: Bunge’s Vazquez
  • China Calls for Stable Grain Output to Ensure Food Security
CBOT Futures
  • Soybeans for Jan. flat at $11.74 3/4 a bushel
  • Corn for March -0.2% to $4.29 3/4 a bushel
  • Wheat for March -0.2% to $6.05 1/4 a bushel
Dalian Futures
  • Soybean meal for May +0.2% to 3,178 yuan/ton
  • Corn for Jan. +0.8% to 2,610 yuan/ton
  • Soybeans for Jan. -0.2% to 5,350 yuan/ton

— With assistance by James Poole

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