Soybean futures closed higher after swinging between gains and losses as investors weighed global scarcity against signs of beneficial weather in Brazil, the world’s top producer and exporter.
Bloomberg reports that soybean oil extended a rally to a six-year high, and grains declined.
Expectations for record Chinese imports, driven in part on concern that dryness in South America will crimp world supply, drove soybeans on Wednesday to the highest since June 2014.
Demand by the Asian nation has drained inventory for the balance of 2020, according to Archer-Daniels-Midland Co., one of the world’s top agriculture traders.
The U.S. this quarter is “in a great position to be able to have the largest export program ever,” Greg Morris, president of ADM’s Ag Services and Oilseeds, said at an investment conference.
