By Jesse Newman
CHICAGO--Soybean futures rose Monday amid ongoing strong demand for U.S. supplies of the oilseeds. Grains fell.
Prices for soybeans rallied for a third straight day, buoyed by an announcement by the U.S. Department of Agriculture that private exporters had booked sales of 132,000 metric tons of soybeans for delivery to China in the 2016-17 crop year. The sale offered proof that overseas buyers are continuing to snap up U.S. soybeans at a brisk pace, helping soothe concerns over demand for the huge crop being brought in from U.S. fields.
Higher prices for soybean meal, an animal feed ingredient for chickens and pigs, also helped boost the soybean market. Prices for the meal rosenearly 1% after the USDA said exporters had sold 135,000 tons of soybean cake and meal for delivery to the Philippines in the current season.
Soybean futures for November climbed 7 3/4 cents, or 0.8%, to $9.89 1/4 a bushel at the Chicago Board of Trade.
Emerging worries over adverse weather in South America, where farmers are planting their next soybean crops, also bolstered oilseed prices on Monday.
"While conditions are nearly ideal in Brazil now, forecasters are raising concerns that we could be on the cusp of shifting a much hotter and drier pattern for central Brazil, with increased wetness problems for Argentina," said Arlan Suderman of brokerage INTL FCStone.
Grain prices declined, weighed down by a stronger U.S. dollar and expectations that a monthly crop report due out from the government on Wednesday will confirm huge stockpiles of corn and wheat.
A firmer greenback makes U.S. farm goods less competitive on the global market at a time when large crops are stuffing the nation's storage bins. Analysts surveyed by The Wall Street Journal widely expect the USDA this week to peg stockpiles of corn and wheat at 29-year highs.
Still, anticipation that the government will slightly trim its outlook for U.S. corn output capped losses in that market.
CBOT December corn futures fell 2 1/2 cents, or 0.7%, to $3.46 1/4 a bushel.
CBOT December wheat slid 4 1/4 cents, or 1%, to $4.10 a bushel.
Write to Jesse Newman at email@example.com
(END) Dow Jones Newswires
November 07, 2016 16:11 ET (21:11 GMT)
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