(Bloomberg) -- Soybean prices rebounded from Thursday’s decline after the US disclosed soy export sales for a fifth straight day and the greenback weakened.
The US Department of Agriculture announced Friday that 120,000 tons of soybeans were sold to unknown buyers. The US has sold 1.38 million tons of soybeans including sales to China this week, more than triple the amount reported in the prior week. A weaker dollar has helped commodities produced in US become more competitive against rivals.
Soybean futures were also fueled by concerns with forecasts of high temperatures and dry weather in US corn belt that could hurt soybean crops, even after data from the Pro Farmer Midwest Crop Tour showed soybean pod count in 3-by-3-foot square is above the three-year average in almost all regions visited.
“Pod counts did not directly equate to yield by any means, especially if you have a dry and and warm finish to the year,” said Angie Setzer, cofounder of farm advisory Consus Ag Consulting LLC. “There is some worry that we could see the top end being taken off this bean crop and an increase in short-term demand here as well.”
The rise in soy oil futures also boosts soybean prices gains as the market weighs comments that Brazil’s buyers are considering sourcing the beans from Argentina, Setzer said.
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