Increased purchases come at a time when the outlook for this year’s US harvest is worsening after a drought hurt crops. There are also concerns about potential frost damage to soybeans in the Midwest, according to CHS Hedging. The USDA also announced a flash sale to China of 238,000 metric tons on Sept 9.
“Soybean prices were bolstered by two large export sales reported this morning, as well as some mild concerns over frost that landed on some upper Midwestern fields earlier this week,” Farm Futures senior editor Ben Potter said in a report.
Soybean futures for November delivery rose 0.6% to close at US$9.7875 ($13.38) a bushel, while corn and wheat declined. Crop conditions have worsened and now analysts expect the USDA to trim its forecast for soybean yields by 3% when it publishes its widely watched monthly supply report on Friday.
“Our latest round of feedback from the field updates shows soybean growers have been battling a bevy of in-season challenges, from weeds to overly dry conditions to even frost earlier this week,” Potter said. — Bloomberg
