The soybean exchange traded fund is turning around and futures prices are rallying the most in five weeks as traders looked to Chinese import data with the government shutdown hindering new U.S. numbers.
The Teucrium Soybean Fund (SOYB) was up 0.8% Thursday. SOYB is still down 3.8% year-to-date.
China purchased 20 cargoes of U.S. corn in October, paying $2.40 a bushel cheaper than domestic prices, Bloomberg reports.
U.S. soybeans were $1.25 cheaper than Brazilian supplies, which helped boost Chinese demand.
Prices “are rising on speculation that China bought more than 3 million tons of soybeans and up to 2.5 million tons of U.S. corn the past three weeks,” Roy Huckabay, an executive vice president at Linn Group, said in the article. “The trade is expecting those sales to be announced shortly, now that the government is back to work.”
The U.S. Department of Agriculture projects that China’s soybean imports could increase 16% to a record 69 million metric tons year-over-year as of Oct. 1.
Soy delivery for November was trading around $12.9 a bushel.
Potential investors should know that SOYB has $5.2 million in assets and shows an average daily volume of 9,354, according to Morningstar data.
Teucrium Soybean Fund
For more information on soy, visit our soybeans category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.
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