Soybeans Soar on Strong Chinese Demand and Higher Crude Prices

The price of Chicago soybeans rose on Monday due to strong demand from China and higher crude oil prices. The most-active soybean contract on the CBOT increased by 0.31% to $13-1/2 a bushel.

This rise in soybean prices was largely driven by Chinese state buyers who have stepped up purchases of US soybeans ahead of President Xi Jinping's visit to Washington later this month. Markets are awaiting greater clarity from the summit on future demand from China, the world's top soybean importer.

The price of soyoil also gained 0.57% to 70.08 cents per pound, tracking higher crude oil prices. Oil prices jumped more than 2% after fresh Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.

However, gains in soybeans were limited after the US Department of Agriculture raised its soybean production forecast on Friday. Wheat rose 0.03% to $7.25-1/2 a bushel as traders assessed risks in the Black Sea region.