US soy futures rally to record high as China shifts yuan policy

 

 

Soy futures rose to the highest level in more than two weeks on speculation that China will boost imports of US crops after ending the yuan's peg to the dollar.

 

The People's Bank of China said June 19 it will relax the fixed rate of RMB6.83 to the dollar because the nation's economic recovery "cemented" after the global financial crisis. US exporters sold 120,000 tonnes of soy to China for delivery before August 31, the USDA said.

 

Soy futures for November delivery rose 11 cents, or 1.2%, to US$9.415 a bushel at 10:38 a.m. on the CBOT, gaining for the fourth straight session. Earlier, the price touched US$9.4725, the highest level for the most-active contract since June 4. Futures gained 2.3% last week, partly as wet weather delayed seeding of the US crop.

 

Soy are the second-biggest US crop, valued last year at US$31.8 billion, behind corn at US$48.6 billion, government figures show.