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Chicago soybeans advance more than 5 percent

Xinhua, May 11, 2016 Adjust font size:

Chicago Board of Trade (CBOT) soybeans advanced more than 5 percent on Tuesday after the U.S. Department of Agriculture released a much-awaited monthly report.

The most active corn contract for July delivery was higher 12 cents, or 3.25 percent, to close at 3.81 dollars per bushel. July wheat delivery added 4.75 cents, or 1.04 percent, to close at 4.6125 dollars per bushel. July soybeans advanced 57.50 cents, or 5.60 percent, to close at 10.84 dollars per bushel.

The U.S. Department of Agriculture (USDA) released its monthly Report of World Agricultural Supply and Demand Estimates (WASDE) Tuesday, which contained USDA's first forecasts for 2016/17 supply and demand and was carefully monitored by the traders.

According to the WASDE report, U.S soybean production for 2016/17 is projected at 3,800 million bushels, down 129 million from the previous year on lower harvested area and yields; while the U.S. soybean crush is projected at 1,915 million bushels, up 35 million from 2015/16, soybean exports are forecast at 1,885 million bushels, up 145 million from the revised 2015/16 projection.

Analysts noted that after the report released, soybean futures advanced to their highest level in one year and half. And the gain on Tuesday was also the largest single day gain since October 2010, according to the daily comment of the Farm Futures.

USDA also said on Tuesday in its daily export system that private exporters reported export sales of 40,000 tons of soybean oil for delivery to China and export sales of 20,000 tons of soybean oil to unknown destinations.

Corn and wheat also rose higher on Tuesday, despite the fact that the WASDE report blew bearish wind to them. In the WASDE report, corn production is projected at 14.4 billion bushels, up 829 million from 2015/16, however, U.S. corn use for 2016/17 is projected 4 percent higher than for 2015/16; the U.S. wheat supplies for 2016/17 are projected up 6 percent from 2015/16.

Some analysts also noted that rains on Tuesday in the U.S. midwest gave additional export to corn as the rain may delay the corn planting. Endit