Soybeans rise on signs that supplies remain tight
Soybean prices ended higher Monday as traders expect supplies to remain tight.
The actively traded July contract for soybeans rose 20 cents to settle at $14.85 a bushel.
The U.S. government’s weekly prediction for soybean exports was higher than traders expected, said Mike Zuzolo, president of Global Commodity Analytics and Consulting in Atchison, Kansas.
Supplies for beans have been extraordinarily tight as China’s demand for soymeal, which is used as animal feed, continues to increase even as U.S. production stays relatively steady, he said. Soybean prices have risen about 15 percent this year.
“That U.S.D.A. number caused the trade to refocus on just how razor-thin supplies are heading in to next fall’s harvest,” Zuzolo said.
July corn fell six cents to $4.77 a bushel and July wheat was little changed at $6.75 a bushel.
Prices for precious and industrial metals edged higher.
Gold for June delivery rose 40 cents to $1,293.80 an ounce. July silver increased two cents to $19.35 an ounce.
Copper for July delivery rose two cents to $3.17 a pound while July platinum rose $4.10 to $1,470.20 an ounce. June palladium edged up 60 cents to $815.60 an ounce.
Energy prices ended mostly higher.
Oil for June delivery rose 59 cents to $102.61 a barrel. Wholesale gasoline dropped 1 cent to $2.96 a gallon. Natural gas rose 5.7 cents to $4.47 per 1,000 cubic feet and heating oil fell 1 cent to $2.94 a gallon.