Demand from China helps the soybean market

November soybean futures (S\_1: COM) hovered + 1.5% at $ 10,435 a bushel, the highest since May 2018 and a 16% increase since August, driven by heavy purchases by Chinese importers. Soybean sales to China for the marketing year, which began on September 1, currently amount to 17.4 million tons, which is already higher than last year's total of just over 17 million tons, which in turn is 20% higher than was in the previous year. China's rising demand for soybeans comes from the country's attempts to rebuild its domestic pig population after African swine fever devastated its pig population last year. A weaker US dollar this year, arid weather conditions in the American Midwest, the reopening of meat processing plants and a lessened swine fever threat in China have also helped drive soy prices higher. Meanwhile, global ending soybean stocks for 2020-21 - the amount of supply remaining after demand has been met - are expected to be 93.59 million tonnes, a decrease of more than 17% from the previous two years - "a huge drop in such a vital commodity," said Teucrium Trading President Sal Gilbertie. The National Oceanic and Atmospheric Administration says a La Niña climate pattern has evolved and is expected to persist throughout winter, increasing the likelihood of soy production being disrupted.