Forexpros – Soybean futures rallied to a one-week high on Monday, boosted by reports that top consumer China increased purchases of soybeans after prices tumbled by nearly 19% in September, while a broadly weaker U.S. dollar provided further support.
On the Chicago Mercantile Exchange, soybean futures for November delivery traded at USD11.8362 a bushel during European morning trade, surging 2.12%.
It earlier rose by as much as 2.35% to trade at USD11.8762 a bushel, the highest price since October 3.
China’s National Grain and Oils Information Center said in a report earlier that Chinese companies purchased a total of 22 cargoes of soybeans from the end of last month to the first week in October, without providing any comparative figures.
The report added that fourth quarter Chinese soybean imports are estimated at 14.2 million tonnes, based on the orders placed so far.
The country is expected to import 4.3 million tonnes, 5.2 million tonnes and 4.7 million tonnes of the crop in October, November and December, respectively. It also forecast that China will import 4.6 million tonnes of soybeans in January of 2012.
China is the world’s largest soybean consumer and is expected to account for nearly 60% of global trade of the grain in the 2011-12 season, according to the U.S. Department of Agriculture.
Soybean prices found further support as the U.S. dollar came under broad selling pressure after German Chancellor Angela Merkel and French President Nicolas Sarkozy said that they have reached an agreement to recapitalize European lenders, following a meeting in Berlin on Sunday
The package will be revealed by the next G20 summit in Cannes starting November 3, according to reports.
The euro jumped more than 1.5% against the greenback on the news, while the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 1.12% to trade at an eight-day low of 78.19.
A weaker dollar boosts the appeal of U.S. crops to overseas buyers and makes commodities more attractive as an alternative investment.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery jumped 1.95% to trade at USD6.1188 a bushel, while wheat for December delivery rallied 2.24% to trade at USD6.2163 a bushel.
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