CHICAGO, June 2 (Reuters) – U.S. soybean futures soared to their highest in nearly two years on Thursday on hopes that export demand will rise amid concerns about the quality of the crop being harvested in Argentina.
Corn firmed to its highest since July 2015, supported by forecasts for a reduced harvest in Brazil. Wheat also rose, with technical strength overcoming concerns about plentiful global supplies.
Soymeal futures led the gains in the soy complex, rising 3.5 percent on expectations that overseas buyers will start to turn to the United States to meet their needs due to weather problems in South America. Soybeans were up 2.4 percent, on track for their third day of gains in four sessions.
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“Realistically, we have seen the numbers out of South America, with the governments there dialling back their production,” said Bill Gentry, a broker with Risk Management Commodities in Lafayette, Indiana. “I think things are tighter than they were. The market is basically dialling it (increased demand for U.S. supplies) in now.”
At 10:31 a.m. CDT (1531 GMT), Chicago Board of Trade July soybean futures were up 27 cents at $11.26-3/4 a bushel. The most-active contract peaked at its highest since July 8, 2014.
CBOT July corn was 4 cents higher at $4.17-3/4 a bushel.
“There is a bullish trend as we are expecting strong demand for U.S. products, both soybeans and corn,” said Kaname Gokon at brokerage Okato Shoji in Tokyo. “Chinese pork prices are at record high, so they will need more corn and soybeans to boost pork production.”
Government data released on Wednesday showed Chinese pork prices hit record levels this week, with farmers holding back pigs from slaughter to rebuild herds following widespread culling in 2014 when prices were low.
Brazil’s cereals exporters association Anec cut its estimate for 2016 corn exports to 23 million tonnes, down 7 million tonnes from its April outlook.
CBOT July soft red winter wheat futures were up 8 cents at $4.81-3/4 a bushel, with gains accelerating as the contract broke through resistance at its 30-, 40-, 100- and 200-day moving averages.
