Soybean at 34-year high on China tariff cut

Soybeans rose to a 34-year peak as China, the world's biggest soybean buyer, extended a tariff cut on soybean imports to the end of March.

The soybean-import tariff will remain at 1 per cent "to ensure adequate cooking oil supply," the state-owned People's Daily said on Monday, citing the country's finance minister.

Chicago soybean futures rose above $12 a bushel for the first time since 1973, trading as high as $12.03 a bushel.

"I think Chicago soybean prices jumped because of this piece of news," Nie Ben, analyst at Liaoning Cifco Futures, said by phone from Dalian. "From January to March, the Chinese buyers will have little choice but to take US soybeans ."

The Chinese government previously reduced soybean import tariffs from 3 per cent on September 21, effective for three months ending Dec 31. State-owned Guangzhou radio on Monday also cited the minister as saying the country was extending the cut.

Soybean futures in Dalian rose for the third day on Monday. The most-actively traded September delivery contract rose 40 yuan, or 0.9 per cent, to close at 4,509 yuan ($614) a tonne.

Dry soil conditions in Argentina, a major producer of the oilseed, also supported prices. A stalled storm front may result in less-than-expected rain in Argentina this week, according to World Weather in Overland Park, Kansas.