Soybean Futures Climb Toward 1-month High After USDA Cuts Production Estimate

By Myra P. Saefong Markets MarketWatch Pulse

Soybean futures rose to their highest level since mid-December Thursday after the U.S. Department of Agriculture cut its estimate on domestic production in 2016. The government estimated soybean output at a record 4.307 billion bushels, but that's down 54 million from last month on lower yields. "Total production and yield for the U.S. soybean crop were lowered more than traders had expected and any lowering of production in the face of growing global soybean demand is also going to make the markets nervous, particularly given the surge in soybean imports by China over the past year," said Sal Gilbertie, president and chief investment officer at Teucrium Trading LLC. March soybeans traded at $10.34 a bushel in Chicago, up 2.2%.

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