Soy Futures Hit New Record High

By CnAgri2012-08-31 19:57:23 Print

Soybean futures jumped to a record on Thursday, buoyed by strong demand from China and concerns that global supplies will remain tight well into next year.

Soybeans for September delivery gained seven cents, or 0.4%, to close at $17.70 1/4 a bushel at the Chicago Board of Trade. Soybeans topped the previous record set Wednesday and are up 48% for the year.

Soybeans also hit an all-time intraday high Thursday of $17.80 3/4 a bushel.

Prices have surged all summer, first on the severe drought that damaged corn and soybean crops, and more recently on demand.

Traders have been waiting for signs the high prices are causing buyers to walk away, but instead export sales and domestic soybean processing have remained strong.

The latest show of strong demand came Thursday morning, when the U.S. Department of Agriculture reported weekly net export sales of 721,300 metric tons, at the high end of traders' expectations. Analysts say the current pace of exports is unsustainable given the tight supply situation, which has made for an explosive market.

Meanwhile, corn futures ended lower, as traders booked profits after rallying on concerns about this year's drought-plagued crop. Corn futures for December delivery end down 0.6% to $8.08 1/24 a bushel.

Wheat futures ended lower, stabilizing after Wednesday's sharp rally. Traders were content to await news from Russia's Agriculture ministry on the country's future exports on Friday before pushing prices higher.

Chicago Board of Trade wheat futures for December delivery settled 2 3/4 cents, or 0.3% lower at $9.03 a bushel. Kansas City Board of Trade December wheat ended down six cents, or 0.7%, at $9.16 a bushel. MGEX December wheat finished unchanged at $9.55 a bushel.