Soybeans Rally to $9.60 on China Bets

Soybean futures rose from a four-year low on speculation that demand will increase in China, the world’s top consumer, following the price slump. Corn and wheat gained.

In the 12 months that started Sept. 1, China’s soybean imports will increase 7.2 percent to 74 million metric tons from a year earlier, the U.S. Department of Agriculture said last month. Futures have tumbled 29 percent this year. Agricultural markets “are very close to a bottom” and reflect record world supplies, Eugen Weinberg, the global head of commodity research at Commerzbank AG, said today in an interview in London.

“China needs to be buying over a million tons of beans in order to fulfill their needs for the year,” Helen Pound, a senior commodity specialist at KCG Futures in Minneapolis, said in a telephone interview. “U.S. beans are clearly much cheaper now.”

Bloomberg

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