Chicago Soybean Futures Surge to Two-Week High on Strong Chinese Demand

Soybean futures in Chicago Board of Trade soared to its highest level in two weeks on Thursday, mainly sparked by Chinese strong demand for the U.S. soybeans.

Soybean future for November delivery rose 55 cents, to settle at 9.71 U.S. dollars per bushel, the strongest closing level since July 6.

The U.S. Department of Agriculture (USDA) said on Thursday morning that private exporters reported sales of 1.92 million tons of U.S. soybeans to China which included 120,000 tons of old crop soybeans and 1.8 million tons of new crops. This gave soybean solid support to hit a new periodic high.

The USDA weekly sales report showed another sign of strong soybean demand. Net weekly export sales for soybeans came in at 245,600 metric tons for the current marketing year and 708,900 for the next marketing year for a total of 954,500 for the week ending on July 23.

Outside market factors provided additional support to strong buying with strength in the stock market and energy markets and weakness in the U.S. dollar.

Buoyed by soy's sharp rally and bullish outside markets, December corn climbed 14.25 cents to close at 3.4225 dollars a bushel. September wheat gained 4.75 cents to 5.1625 dollars per bushel.