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Strong Export Sales Help Soybean Futures Trade Higher

September 29, 2016 at 17:03 by Andrew Moran

Soybean is continuing its bullish ways.

US soybean futures are trading higher on Thursday after a new report found strong export demand. It could have gone higher, but there were reports of good yields from fields in the US Midwest, which means harvest is ramping up.

November US soybean futures are up $0.09 cents to $9.54 per bushel at 16:36 GMT on the Chicago Board of Trade (CBOT). January soybean futures are also up $0.08 to $9.60 a bushel. This is helping continuing soybean’s upward trend all year long. Soybean futures have risen between 2% and 9% per month for much of the year.

China’s demand for soybeans is helping drive up soybean futures. It was reported by the US Department of Agriculture (USDA) on Thursday that export sales to China reached 133,000 metric tons, and another 211,171 tons to unknown buyers for delivery. Also, China has already booked US soybean shipments this week.

Traders are helping soybean futures even more as there has been a tepid round of bargain buying and short-covering just before an important government report. The USDA will release the quarterly US grain stocks data on Friday.

According to a report from MarketWatch, some experts contend that if the US third-quarter gross domestic product (GDP) surges above 3% it will be because of soybeans. With skyrocketing exports of US soybeans, the July and August trade deficits could shrink, which tend to give the GDP a shot in the arm. It is estimated that soybean exports could add about 1% to the overall GDP. Soybean exports tripled to $5.2 billion in July.

When it comes to the soybean harvest, rains in the eastern Midwest could slow it down. West of the soybean crop looks to be dry for at least another week.

Corn was able to take advantage of soybean’s gains. December corn futures jumped $0.02 to $3.31 per bushel.

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