Soybean exporters in the America, the world’s top shipper, sold 2.923 million metric tons to China in the biggest one-day deal on record. Prices in Chicago rose to the highest in almost five months. Global soybean consumption has soared in the past decade, fueled by economic growth in China, India and Brazil that boosted incomes and demand for vegetable oil used in fried and baked foods, candy and breads. People also are eating more meat, increasing the need for the oilseed to make livestock feed.
U.S. and Chinese officials yesterday signed a five-year accord to cooperate on agricultural production and trade and food security. This week, China signed agreements in Iowa to purchase 8.62 million tons of soybeans as Chinese Vice President Xi Jinping visited the state. The Asian nation purchased $22.17 billion of U.S. farm products last year, helping to boost total exports to a record. The sale includes 2.75 million tons for delivery in the year that begins Sept. 1 and 173,000 tons prior to Aug. 31, the U.S. Department of Agriculture said today in a statement. China is the largest oilseed importer and the biggest buyer of U.S. agricultural products.
“No doubt those were whopper sales,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “With the Chinese in town, there’s something to that.”
Companies including Cargill Inc. and Archer Daniels Midland Co. signed contracts on Feb. 15 to export $4.3 billion of soybeans to China. U.S. Agriculture Secretary Tom Vilsack, who met with Xi and Chinese farm minister Han Changfu in Iowa during their visit this week, said the sales highlight a strong relationship he expects will expand.
“I have a good relationship with the Chinese agriculture minister, and I think these discussions will bring progress later” on boosting sales of soybeans and other products, including some U.S. beef cuts currently banned in the country, Vilsack said.
Soybean futures for May delivery rose 0.7 percent to close at $12.7375 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price reached $12.795, the highest for the most- active contract since Sept. 23.
“Agriculture has become one of the highlights in U.S.- Chinese relations,” Han said yesterday at a symposium in Des Moines. “Agriculture has had a huge benefit on both countries.”
The U.S. is the largest exporter of agricultural products. China, the most-populous country, bought $10.5 billion of the U.S. soybean crop last year, 29 percent of total production, according to USDA data.
U.S. and Chinese officials yesterday signed a five-year accord to cooperate on agricultural production and trade and food security. This week, China signed agreements in Iowa to purchase 8.62 million tons of soybeans as Chinese Vice President Xi Jinping visited the state. The Asian nation purchased $22.17 billion of U.S. farm products last year, helping to boost total exports to a record. The sale includes 2.75 million tons for delivery in the year that begins Sept. 1 and 173,000 tons prior to Aug. 31, the U.S. Department of Agriculture said today in a statement. China is the largest oilseed importer and the biggest buyer of U.S. agricultural products.
“No doubt those were whopper sales,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “With the Chinese in town, there’s something to that.”
Companies including Cargill Inc. and Archer Daniels Midland Co. signed contracts on Feb. 15 to export $4.3 billion of soybeans to China. U.S. Agriculture Secretary Tom Vilsack, who met with Xi and Chinese farm minister Han Changfu in Iowa during their visit this week, said the sales highlight a strong relationship he expects will expand.
“I have a good relationship with the Chinese agriculture minister, and I think these discussions will bring progress later” on boosting sales of soybeans and other products, including some U.S. beef cuts currently banned in the country, Vilsack said.
Soybean futures for May delivery rose 0.7 percent to close at $12.7375 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price reached $12.795, the highest for the most- active contract since Sept. 23.
“Agriculture has become one of the highlights in U.S.- Chinese relations,” Han said yesterday at a symposium in Des Moines. “Agriculture has had a huge benefit on both countries.”
The U.S. is the largest exporter of agricultural products. China, the most-populous country, bought $10.5 billion of the U.S. soybean crop last year, 29 percent of total production, according to USDA data.
Soybean prices may be poised to extend declines as supply increases from South America and demand growth may slow from China, the largest consumer.
Soybeans have “room to fall” below $11.50 a bushel in the long term, said James Zhou, director of trading, Cargill Investment (China) Ltd. Prices are still relatively high, enough to sustain planting interest, so output may increase, Zhou said today at a conference in Guangzhou, China. Soybeans traded at $11.755 on Nov. 11.
Prices in Chicago have dropped 16 percent this year on larger crops in Brazil and Argentina, the biggest producers after the U.S., and concern the European debt crisis may curb global economic growth. Soybean imports may drop this year for the first time since 2004, the China National Grain & Oils Information Center said Nov. 11. Goldman Sachs Group Inc. last week reduced its forecast for soybeans on rising supplies.
China’s “huge demand” for commodities may have reached a “major turning point,” and the growth of imports in the next three-to-five years may slow along with its economic expansion, said Fei Zhonghai, vice president of COFCO Ltd.,the country’s largest grains trader.
Soybean prices may decline to $9 a bushel or even lower as “we are entering bearish phases of the price cycles for soybeans, soybean oil and soybean meal,” which may last one to two years, said Anne Frick, a senior oilseed analyst at Jefferies Bache LLC. The key bearish factor is the economy, as well as trade protectionism and changes in biofuel policies, Frick said at the conference.
Soybean oil may drop to 34 cents per pound and soybean meal may slump to $260 per ton, Frick said. Goldman Sachs lowered its soybean forecast to $12.20 a bushel during the next three months and to $12.50 in six months, down from $12.60 and $13.
Soybeans have “room to fall” below $11.50 a bushel in the long term, said James Zhou, director of trading, Cargill Investment (China) Ltd. Prices are still relatively high, enough to sustain planting interest, so output may increase, Zhou said today at a conference in Guangzhou, China. Soybeans traded at $11.755 on Nov. 11.
Prices in Chicago have dropped 16 percent this year on larger crops in Brazil and Argentina, the biggest producers after the U.S., and concern the European debt crisis may curb global economic growth. Soybean imports may drop this year for the first time since 2004, the China National Grain & Oils Information Center said Nov. 11. Goldman Sachs Group Inc. last week reduced its forecast for soybeans on rising supplies.
China’s “huge demand” for commodities may have reached a “major turning point,” and the growth of imports in the next three-to-five years may slow along with its economic expansion, said Fei Zhonghai, vice president of COFCO Ltd.,the country’s largest grains trader.
Soybean prices may decline to $9 a bushel or even lower as “we are entering bearish phases of the price cycles for soybeans, soybean oil and soybean meal,” which may last one to two years, said Anne Frick, a senior oilseed analyst at Jefferies Bache LLC. The key bearish factor is the economy, as well as trade protectionism and changes in biofuel policies, Frick said at the conference.
Soybean oil may drop to 34 cents per pound and soybean meal may slump to $260 per ton, Frick said. Goldman Sachs lowered its soybean forecast to $12.20 a bushel during the next three months and to $12.50 in six months, down from $12.60 and $13.
