Soy futures rose on Wednesday refreshing the 14-month maximum amid a huge export demand and also the quotes rollback on other commodity markets.
By the end of the deals on CBOT soy futures with November delivery closed having risen by 32 cents or by 2.7% to 12.12 dollar/bushel. Last Friday the soy prices touched the high at 12.04 dollar/bushel, after that they moved downwards.
The US dollar drop on Wednesday also supported the commodity markets: the prices for oil and corn ticked up by 5% at 5.73 dollar/bushel. The US dollar weakening makes the futures cheaper for investors using other currencies.
The traders say that a strong demand on the American soy, particular in China is the main driving factor on this market. On Wednesday the U.S. Department of Agriculture published the report showing that soy export in China reached 180 000 tones for 2010-2011 trading year.
On Wednesday the soy neutralized the losses suffered a day before when it becane known that the interest rate was advanced in China. It has led to the soy prices downturn, as the investors were afraid that this decision may result in the demand easing.
The traders will watch closely over the monetary policy of China, as it is the major soy importer with fast rising beaf market. China continues buying big soy reserves for cattle fattening.
