U.S. soybean futures leapt to a record, buoyed by strong demand 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 $17.7025 a bushel at the Chicago Board of Trade. Soybeans topped the previous record closing high set Wednesday and are up 48% for the year.
Soybean prices have surged for much of the summer as a severe drought has eroded the size of the coming U.S. harvest. Prices have picked up additional steam lately following reports of higher than expected demand. On Thursday, the U.S. Department of Agriculture said weekly export sales of soybeans totaled 721,300 metric tons, which was at the high end of traders' expectations, showing that demand for U.S. soybeans hasn't waned as prices have hit highs.
Such reports, combined with supply squeezed by drought, have made for an explosive market. "It's like watching kindling, and the smallest spark sets it on fire," said Sterling Smith, commodity strategist with Citigroup Inc. in Chicago. Read more >>
No comments:
Post a Comment