Soybeans rise on increased US animal feed demand

Soybeans rose for a fifth straight day, the longest rally in five months, on signs that livestock producers boosted demand for animal feed after the price fell last week to the lowest level since December 2008. “Hog producers can make as much as $30 locking in feed costs, and cattle producers are making over $100 per animal,” said Mark Schultz, the chief analyst for Northstar Commodity Investment Co in Minneapolis. “The chicken industry is profitable, and the dairy producer is expanding again. Meat producers increased purchases of soymeal this week.” Soybean futures for May delivery rose 2.25 cents, or 0.2 per cent, to $9.6175 a bushel on the Chicago Board of Trade, capping a 3.9 per cent gain this week. The five-session rally was the longest since October 12. This year, the commodity is down 8.3 per cent on forecasts for record production in Brazil and Argentina, the biggest exporters of animal feed and cooking oil. Soybean-meal futures for May delivery rose 30 cents to $270.20 for 2,000 pounds on the CBOT, up 7.5 per cent this week, the biggest gain in five months. The most-active futures fell to $251 on March 15, the lowest level since December 2008.