Soybean futures capped the longest rally in 40 years after top buyer China stepped up purchases and the outlook for this year’s US crop deteriorated.
Futures traded in Chicago rose for a 12th consecutive session, the longest rally for a most-active contract since 1980. China stepped up purchases in recent months to meet demand from a hog industry that is recovering faster than analysts expected. US sales from the new crop to China are running at the fastest pace in seven years, US Department of Agriculture data show.
Increased purchases come at a time when the outlook for this year’s US harvest is worsening after a drought hurt crops. There are also concerns about potential frost damage to soybeans in the Midwest, according to CHS Hedging. The USDA also announced a flash sale to China of 238,000 metric tons on Sept 9.
