CHICAGO- Chicago soybean futures extended their bull run, reaching a two-year top as top global buyer China continued with daily purchases of US soybeans.
Wheat futures surged more than 3 percent on fears of tightening supplies from key exporters, and corn futures rose for a third straight session.
Chicago Board of Trade November soybeans settled up 15 cents at $10.43-1/2 per bushel after reaching $10.46-3/4, a contract high and the loftiest price on a continuous chart of the most-active soybean contract since May 2018.
CBOT December wheat ended up 18-3/4 cents at $5.75 per bushel after touching $5.78, the contract’s highest since Feb. 21. December corn CZ0 settled up 3-1/4 cents at $3.78-1/2 a bushel.
With Friday’s higher close, soybeans have risen in 17 of the last 19 sessions and recorded a sixth straight weekly advance, buoyed by a streak of daily Chinese purchases of US supplies.
The US Department of Agriculture confirmed US soy sales to China in each of the last 11 business days, including Friday’s announcement of 132,000 tons. The USDA also reported sales of 210,000 tons of US corn to China and 100,000 tons of soymeal to unknown destinations.
“China had a whole industry devoted to taking food waste and feeding it to hogs, and that’s illegal now. So they are rebuilding their herds, and they are having to do it with corn and soybean meal,” said Jim Gerlach, president of Indiana-based A/C Trading.
As it rebuilds its massive hog herd following a devastating outbreak of African swine fever, China is also looking to fulfil commitments in a trade pact with the United States and avert tensions in food supply, analysts said.
In wheat, the CBOT December WZ0 contract neared a seven-month high as worries about dry weather curbing crops in Argentina, Europe and the Black Sea region sparked fund-driven buying.