Feb. 23 (Bloomberg) -- Soybeans gained for a second day as a weaker dollar made U.S. supplies more attractive to importers.
The U.S. currency fell against the euro on speculation the U.S. Federal Reserve will hold its target interest rate near zero to sustain a recovery in the world’s biggest economy. Speculative short positions, or bets prices will drop, fell 15 percent to 75,034 contracts in the week ended Feb. 16, according to the U.S. Commodity Futures Trading Commission.
“It’s the big funds buying in the grain market, covering their previous short positions,” Johnston Bae, a grains broker at Eugene Investment & Futures Co., said from Seoul. “They must be taking advantage of the weakness in the dollar.”
Soybeans for May delivery rose 2 cents, or 0.2 percent, to $9.71 a bushel on the Chicago Board of Trade at 10:51 a.m. London time. The contract added 1.5 percent yesterday.
Demand for soybeans in China, the world’s biggest buyer of the oilseed, will remain “huge and irreversible” Han Jun, director of the rural economy department at the Development Research Center of the State Council, said at a press conference in Beijing today........More detail
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