Chicago Close: More China Export Demand Lifts Soys Again

Soybean futures closed higher for the 14th time in 15 sessions on Monday amid still-strong export demand from China, the world’s No. 1 soy buyer.

The USDA announced this morning that private exporters sold 129,000 tonnes of soybeans to China, and 318,000 tonnes to unknown destinations. The continued strong demand for soybeans comes as US production prospects are shrinking. Its monthly supply-demand update on Friday, the USDA trimmed its estimate of 2020 American soybean output to 4.31 billion from 4.42 billion in August. Ending stocks for 2020-21 were cut to 460 million from 610 million. November beans were up 3 ½ cents at $9.99 ½ while the January contract climbed over $10 to end at $10.03 ¼, a gain of 4 cents on the day.

Demand from China also helped to buoy corn futures. The USDA today announced private export corn sales of 350,000 tonnes to China, along with 106,000 to Japan. USDA also announced China as the destination for a previously announced 140,000-tonne sale to unknown destinations. December corn was up a penny at $3.69 ½ and March was up ¾ of a cent at $3.79.

Wheat closed mixed, with some support coming from bargain buying. Updated production estimates released by Statistics Canada today pegged the 2020 Canadian all wheat crop at 34.14 million tonnes, down from the agency’s Aug.31 estimate of 35.73 million but 5.6% above a year earlier and still the country’s largest all wheat crop since 2013. December Chicago wheat gained 3 ¾ cents to $5.45 ¾, December Kansas City was 2 ¼ cents higher at $4.73 ½ and December Minneapolis eased 1 ¾ cents to $5.30 ½.

Cattle futures ended higher today, while hogs were lower.

Source: DePutter Publishing Ltd.

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