Soybean futures rise 1% past $10 as dollar dips

Soybean futures rose in American trade to the highest since December 7, as the dollar index lost ground following a basket of data from the US, the world's largest soybean producer and exporter, while the Federal Reserve started its two-day policy meeting in Washington. 

As of 08:28 GMT, soybean futures due on March 15 rose 0.88% to $10.0025 from the opening of $9.9150, while the dollar index dipped 0.15% to 89.17 from the opening of 89.31. 

Earlier US data showed the S&P House Price Index accelerated to 6.41% from 6.32% in October, beating expectations of 6.3%, while the CB consumer confidence survey rose to 125.4 in January from 122.1 in December, beating expectations of 123.2. 

The US Department of Agriculture reported total inspection of 1.10 million tonnes of soybeans in the week ending last Sunday, down from 1.42 million in the previous week, with total inspected soybeans in the current marketing year amounting to 33.4 million tonnes, down from 38.8 tonnes in the same period of last year. 

The USDA's report on global agricultural demand and supply for January cut productivity expectations of soybean to 49.1 bushels per acre, while cutting expectations for total cultivated land by 100 thousand acres to 90.1 million acres. 

The Department now expects total soybean output in the current agricultural year at 470 million bushels, up from 455 million, while expecting soybean returns to dip 6% from 2016 levels. 

The report also pointed to a rise in soybean inventories by 9% compared to 2016 levels, to 3.16 billion bushels, while soybean exports fell by 65 million bushels from 2.16 billion bushels due to increased competition from Brazil.