KANSAS CITY — Foreign demand for U.S. soybeans and soybean oil continued this week despite recent cancellations by major buyer China, helping push soy complex futures prices higher in a week of holiday-reduced trading volume.
The U.S. Department of Agriculture reported on Monday the sale by private exporters of 20,000 tonnes of optional-origin soybean oil for delivery in 2012-13 to “unknown destinations” and on Wednesday the sale of an additional 56,000 tonnes of soybean oil to “unknown destinations” along with 20,000 tonnes of soybean oil to China and 120,000 tonnes of soybeans to China, all for delivery in the current marketing year.
In its weekly Grain Inspections for Export report, the U.S.D.A. said 61,992,000 bus of soybeans were inspected and/or weighed for export shipment during the week ended Nov. 15, of which 75% was destined for China. Soybean export inspections for the marketing year to date (Sept. 1 to Nov. 15) totaled 496,834,000 bus, up 40% from the same period a year earlier.
Continued export demand was cited by traders as supportive to soy complex futures this week. CME Group nearby January soybean futures were trading around $14.18 a bu early Wednesday, up about 3% for the week. Nearby December soybean oil futures were trading near 48.75c a lb on Wednesday morning, up about 4% since Friday.
Foreign demand for U.S. soybeans and soybean products is expected to continue until the forecast record large South American soybean crop, which now is being planted, comes to market in a few months.
The weekly U.S.D.A. Export Sales report will be released Friday because of the Thanksgiving holiday.