Export demand, soymeal market fueling prices
U.S. soybeans rallied for a second straight session on May 22, as old-crop futures hit contract highs. Demand increased worries about the short-term supply in the U.S.
Soybeans rose more than 3 percent in two days, due to demand for exports and a soaring soymeal market.
“The fact that soybean export sales weren’t negative is beneficial and we saw another good round of soybean meal as well, which is quite supportive,” said Sterling Smith, a futures specialist at Citigroup, in a Reuters report.
The U.S. Department of Agriculture (USDA) said exporters sold a net 615,600 tons of U.S. soybeans last week, including 164,400 tons of old-crop supplies, and 350,300 tons of soymeal, the most in nine weeks.
USDA also confirmed the private sale of 120,000 tons of new-crop U.S. soybeans to China, the world’s biggest soybean importer.
Chicago Board of Trade July soybeans gained 13-1/2 cents, or 0.9 percent, to $15.18-3/4 a bushel after previously hitting a contract high of $15.36-3/4, the highest for a spot contract since July 2013. The August and September contracts also posted contract highs.