Soybeans Climb to Two-Year High on China Demand, U.S. Crop Woes

Sample bags of soybeans sit at a grain facility in Mansfield, Ohio, in the U.S. on June 3. Photo: Bloomberg

(Bloomberg) — Soybean futures in Chicago advanced for the sixth day to the highest level since June 2018 on strong demand from China, worries about deteriorating U.S. crop conditions and a weakening dollar. Corn futures climbed to the strongest since March, while wheat was near the highest since April.

China has stepped up purchases of U.S. farm goods since the end of April, with soybean sales for delivery next season currently running at their highest level for this time of year since 2013. The country has also set several daily records for corn purchases, and is on course to exceed for the first time an annual quota set by the World Trade Organization. China’s buying of hard red winter wheat has been expanding too.

“Concerns over crop quality conditions in the dry Midwest ahead of rains from Hurricane Laura compounded with strong export demand from China” have boosted soybeans, Farm Futures grain market analyst Jacqueline Holland said in a report last week.