Grain Futures Surge on China Buying Spree and Energy Market Support

Grain futures surged on Thursday, led by soybeans which reached new highs as China continued its buying spree ahead of the US-China summit. Brady Huck with Empower Ag Trading noted that the recent flash sales have been a welcome sight for the market, and the latest purchases have put total soybean flash sales for the week at 34.1 million bu.

The purchase of 10 million bu by private exporters indicated China's continued interest in US soybeans, with unknown destinations also taking 8.0 million bu. This buying activity has coincided with news reports that China had purchased 1.0 Million Metric Tons (MMT) of soybeans this week.

The energy markets have also been supportive of the rally, with WTI crude oil soaring above $100 for the first time in three months and record high diesel fuel prices driving up heating oil and soybean oil.