Soybeans climb to highest since 2016 on US export hopes

HAMBURG: Chicago soybean futures rose to their highest in more than four years on Tuesday as expectations of more US exports coupled with record-large US domestic soybean crushings faced tight supplies.

Chicago Board of Trade most-active soybeans were up 1.0% at $11.65 a bushel at 1152 GMT, after earlier on Tuesday hitting their highest since June 2016 at $11.69-1/2 a bushel.

Corn rose 0.4% to $4.18-1/4 a bushel, wheat fell 0.1% to $5.97 a bushel.

US data underlined both booming US soybean and corn exports and strong US domestic soy demand.

Over 2.2 million tonnes of US soybeans were inspected for export last week, mostly for China, said the US Department of Agriculture (USDA).

Nearly 815,000 tonnes of US corn was also inspected for export, including almost 280,000 tonnes for China.

"Soybeans are leading the complex today with hopes of more US export sales, especially to China, and signs of robust US domestic soybean crushing demand," said Matt Ammermann, StoneX commodity risk manager. "This is against the background of tighter supplies after the forecast of smaller US soybean stocks from the USDA last week."

"China's hog herd is recovering strongly after being reduced by the swine fever outbreak which would increase feed demand. South American soybean crop weather is also not looking favourable at this early stage of the season."

The monthly US soybean crush surged to a record high in October, topping all trade estimates.

China's pig herd increased 26.9% on the year in October, extending strong rebounds in the previous few months after large numbers of pigs were killed by African swine fever.

"Corn is also being supported by optimism of new US export sales, with China the main hope," Ammermann said. "The US is currently the world's main source of corn exports and is likely to remain so for coming months."

"Wheat is seeing some spillover support from corn," Ammermann said. "Poor weather in parts of the Black Sea wheat export region is also supportive, although wheat is also at a very early stage of the season and much can still change."