Soybean Prices Rally, Futures Delivery May 2012 Advanced

Soybean extended rallies to the highest prices since September on speculation that China may boost purchases from the U.S., the biggest producer of soybean crops. Soybean imports may rise more than 20 percent in the first half of 2012, Grain.gov.cn said March 12.

Soybeans may rally next week as unusually warm, dry weather and drought conditions in parts of the northwestern Midwest may threaten this year’s crops and encourage farmers to withhold supplies left from last year’s harvest, Tim Hannagan, a grain analyst for PFT Best Inc. in Chicago, said in a telephone interview.

Soybean futures for May delivery advanced 0.4 percent to $13.74 a bushel in Chicago, after touching $13.775, the highest since Sept. 15. The oilseed rose 2.7 percent for the week, the fifth straight and the longest weekly rally since November 2010.

“The export-pipeline supply of soybeans will shrink the next few weeks because farmers will fear the weather will prevent building stocks to more comfortable levels,” Hannagan said. “March is a month when investors pour money into the grain markets before the start of the growing season.”

Soybean futures for May delivery gained 0.2 percent to $13.7175 a bushel in Chicago, after touching $13.775, the highest since Sept. 15.