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GRAINS-Soybeans jump after China purchase, strong crush
November 14, 2012 / 6:13 PM / 5 years ago

GRAINS-Soybeans jump after China purchase, strong crush

* China buys 120,000 tonnes U.S. soybeans - USDA
    * NOPA reports larger-than-expected October soy crush
    * Wheat stumbles, despite U.S. crop worries

 (Adds closing prices, fund activity)
    By Tom Polansek
    CHICAGO, Nov 14 (Reuters) - U.S. soybean futures rose for a second day on
Wednesday on export business that included China buying 120,000 tonnes and on a
larger-than-expected October crush, a turnaround from sharp losses earlier in
the week.
    Export demand has increased as soybean prices have moved lower since early
November. They were knocked to a 4-1/2 month low on Tuesday on technical selling
and diminished concerns about tight supplies, but later recovered to close
higher that day.
    The U.S. Department of Agriculture on Wednesday reported that private
exporters struck deals to sell 120,000 tonnes of U.S. soybeans to China, the
world's top importer of the oilseed. Exporters sold 40,000 tonnes of U.S.
soybean oil to unknown destinations. 
    Separately, the U.S. National Oilseed Processors Association (NOPA), said
processors crushed 153.536 million bushels of soybeans in October, the largely
monthly total in nearly three years. The crush was well above the 147.713
million expected by analysts. {ID:nL1E8ME4NC]
    "Strong demand is supporting soybean futures, both domestically and
globally," said Karl Setzer, grain solutions team leader for MaxYield
Cooperative.
    January soybeans rose 0.8 percent to $14.19 a bushel at the Chicago
Board of Trade. December corn edged up 0.3 percent to $7.25-3/4 a bushel,
and December wheat lost 0.3 percent to $8.48-3/4 a bushel.
    Commodity funds bought an estimated 3,000 soybean contracts, 3,000 corn
contracts, and sold 1,500 wheat contracts, traders said. 

    WHEAT STUMBLES
    Wheat stumbled, although the U.S. crop has deteriorated due to dry weather.
    The USDA on Tuesday said U.S. winter wheat was 36 percent good to excellent
as of Nov. 9, down from 39 percent a week earlier. A year ago, the crop was
rated 50 percent good to excellent. 
    Dryness remains a concern across the Farm Belt following the worst U.S.
drought in more than half a century, and little rain is expected in the western
portion of the U.S. Plains hard red winter wheat region for the next 15 days,
according to MDA EarthSat Weather.
    "This dry pattern has not broken," said Jason Britt, president of Central
States Commodities.
    U.S. wheat has become more competitive in the world market as supplies from
the Black Sea region have tightened and Australia is set to produce a smaller
crop.
    However, the United States continues to lose out on business.
    A Libyan state grain buying agency in Benghazi purchased 30,000 tonnes of
optional-origin milling wheat in a tender that closed on Nov. 6, European
traders said on Wednesday. Traders said they suspected it would be sourced in
Russia. 
    Meanwhile, Jordan's state grain buyer bought 50,000 tonnes of wheat in an
international tender for 100,000 tonnes, traders said. It was optional origin
but believed likely to be sourced from Ukraine. 
    The United States could face increased competition for exports from Europe
next year, with French-based analysts Strategie Grains projecting wheat
production in the European Union could see rise by more than 10 percent to a
five-year high in 2013. 
    
 Prices at 3:38 p.m. CST (2138 GMT)      
                              LAST      NET    PCT     YTD
                                        CHG    CHG     CHG
 CBOT corn                  725.75     2.25   0.3%   12.3%
 CBOT soy                  1419.00    11.00   0.8%   18.4%
 CBOT meal                  436.00     2.90   0.7%   40.9%
 CBOT soyoil                 47.67     0.65   1.4%   -8.5%
 CBOT wheat                 848.75    -2.25  -0.3%   30.0%
 CBOT rice                 1438.00   -13.50  -0.9%   -1.5%
 EU wheat                      .00     0.00   0.0% -100.0%
 
 US crude                    86.36     0.98   1.2%  -12.6%
 Dow Jones                  12,571     -185  -1.5%    2.9%
 Gold                      1725.49     0.60   0.0%   10.3%
 Euro/dollar                1.2735   0.0033   0.3%   -1.6%
 Dollar Index              81.1200   0.0380   0.0%    1.2%
 Baltic Freight               1011       26   2.6%  -41.8%
 * All grain and oilseed prices for second position. Paris futures prices in
Euros per tonne, London wheat in pounds per tonne and CBOT in cents per bushel.

 (Additional reporting by Michael Hogan in Hamburg and Naveen Thukral in
Singapore; Editing by Alison Birrane, Grant McCool, M.D. Golan and Bob
Burgdorfer)

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