Soybean Futures Touch $16 in Chicago, Highest Since 2012
(Bloomberg) -- Soybean futures touched $16 on Tuesday for the first time since 2012 as concerns mount over a supply crunch.
Surging Chinese demand and bad weather in key global-growing areas are stoking fears of grain shortages. China’s expanding hog herds need soybean meal, so the Asian nation has been buying massive amounts of the oilseed off global markets.
The economic recovery from the pandemic is driving demand for agricultural goods generally, draining stockpiles and fueling food-inflation concerns.
Restaurants are reopening amid easing Covid-19 restrictions need vegetable oils for cooking, and the renewable diesel industry is expanding. All of that is ramping up demand for the bean’s oil. On Monday, Archer-Daniels-Midland said it was building a new $350 million soy crushing facility.
A U.S. report due Wednesday will give an updated look at expectations for global grain inventories.
Soybeans for July delivery rose by as much as 2.4% to $16.255 a bushel in Chicago.
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