Market News

Soybeans gain big on immense Chinese sale: July 30, 2009

Soybeans were sharply higher on a buying binge by China. On Thursday alone the Chinese bought a whopping 1.9 million metric tons of U.S. soybeans for delivery mostly this year and next. Weekly export sales for soybeans also were well above expectations and the same is true for meal sales. Soybean oil sales were at the higher end of expectations, but with negative crush margins, demand could slow.

Corn was higher with good export sales if its own and favorable outside markets. The Dow Jones Industrial Average and crude oil were up and the dollar was down. Weekly export sales came in just above expectations. The firm crude trade and neutral weather kept the trade supported through Thursday’s session close.

Wheat gained modestly on strong spillover support from soybeans, corn and the lower dollar. And although the gains held through the Thursday session, wheat followed corn and soybeans upward against continued bearish factors. Weekly export sales were above the range of expectations.