(Bloomberg) -- Soybean prices erased gains after reaching a two-month high, as traders weighed an ample supply outlook and speculation about Chinese demand.
Futures for November delivery rose as much as 1.1% in Chicago to $10.6475, the highest intraday price since July 26, before reversing those gains.
Soybean prices have bounced back since plunging to the lowest level since 2020 amid concerns about the weather in Brazil and economic stimulus in China. Still, the upside is limited by a bumper US harvest. Signs that recent gains have been overextended also weighed on futures.
There are numerous reports that US exports sold as much as 25 cargoes of soybean to China ahead of a major holiday, according to Vinicius Ito, a director at futures and options brokerage Marex Group Plc.
“It’s possible that China is accelerating US soybean purchases this week and will buy less or nothing next week — it has done the same in previous years,” said Ito.
Soybean prices have also been boosted as US export sales show a steady demand for the bean. While soybean sales fell to 1.57 million tons in the week ended Sept. 19, volume topped average analyst expectations.
“Demand for US soybeans is flowing,” said Ito. “If we look at accumulated sales for the year, it’s already equivalent to last year.”
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