US soybean futures rose on Friday amid persistent strong buying demand from China, overcoming the bearish effects of a rallying dollar and weakness in the crude oil market, traders said. Concerns about crop development in South America also has helped support soybeans, which have rallied 6.3 percent this week, despite expectations for a record crop in the United States.
"The soybeans, it is still the China syndrome," said Don Roose, analyst with US Commodities in West Des Moines, Iowa. "China has this relentless appetite to buy beans. You have a big demand with just enough dryness in Argentina to keep this balanced." Corn and wheat futures weakened on Friday as the cautious mood in outside markets turned attention back to heavy fundamentals.
The dollar strengthened on Friday as investors scaled back perceived higher-risk investments, putting pressure on dollar-priced commodities such as oil and grains. Chicago Board of Trade January soybeans closed up 7 cents at $10.46 a bushel. China, the world's biggest soybean importer, has bought more than 16 million tonnes of US soybeans, and imports in November were expected to pick up to 3.5 million tonnes, from 2.52 million tonnes in October, according to the China National Grain and Oils Information Centre.
CBOT December wheat settled down 2-3/4 cents at $5.59-3/4 a bushel, while corn for December delivery dropped 4 cents to $3.91 a bushel. Profit-taking was adding pressure to both corn and wheat as prices rallied earlier in the week. The increased prices have hurt the competitiveness of US wheat on the world market, exacerbating heavy supplies.