Prices of soybeans remained aloft on Wednesday, thanks to China's second round of purchase of US soybean this week and Argentina's continuous dry weather reports, the AgWeb reported.

USDA announced a 330,000 MT export sale of soybeans to China, including 66,000 MT for 2016-2017 and 264,000 MT for 2017-2018. It followed Monday's 426,000 MT soybean sales to China.

Like Us on Facebook

"I think what is going on today is that another round of soybean sales to China continues to be an underlying supportive factor," Don Roose, president of US Commodities in West Des Moines, Iowa, said.

Iowa Farmer Today noted that Chinese buyers are locking in crush spread with futures. They are also poised to purchase soybeans from the US or South America.

Thus, Angie Setzer, vice president of grain, Citizens Elevator in Charlotte, Michigan, advised farmers to lock in futures as well to capitalize on strong soybean prices, "if not cash prices, for both the old and a portion of the new crop."

"I think we have flipped from a supply-based soybean market to a demand-based market," La Placa said, adding that breaks will be bought and investment funds will pursue the soybean and oil futures markets.

On the other hand, Roose also voiced concern that Argentina's dry weather could cause potential crop losses. Frank La Placa, president of Imperial Futures, Park Ridge, III, said Argentina's forecasts for more dry weather until February have been boosting soybean futures. Although he noted that these forecasts could change, "but if South America gets a short crop, it's hard for any US soybean crop to really cover the worldwide demand."

Tagssoybean, soybean futures, soybean imports, China soybean demands