January 14, 2008

 

Asia Grain Outlook on Monday: Corn to rise on CBOT bullishness

 

 

Corn prices should keep rising this week, tracking a bullish trend in Chicago Board of Trade futures.

 

CBOT corn futures breached the psychologically-significant US$5-a-bushel mark Monday, carrying on gains from Friday's U.S. trading.

 

They got a boost Friday as ending stocks in the U.S. were lower than expected, despite a record crop in 2007, as robust demand continues to grow.

 

At 0458 GMT, CBOT March corn was trading up 13.2 cents at US$5.08/bushel.

 

In other news, China's booked three to four soybean cargoes from the U.S. and South America over the past week, unchanged from the preceding week, said commodities analysis firm Shanghai JCI.

 

Inquiries by Chinese traders for soybean imports are slowing down as CBOT soybean prices remain high, while soymeal demand in China is flat.

 

In expected deals this week, bidding for state-run Trading Corp. of Pakistan's wheat import tender will close Thursday. The government may buy up to 610,000 metric tonnes of wheat.

 

Japan's Ministry of Agriculture should seek to import wheat in a tender to be announced on Tuesday.

 

In other news, according to Chinese customs data last week, the country exported 4.92 million tonnes corn in 2007, up 58.7% on year.

 

On Dec. 30, the Chinese government imposed export taxes from 5% to 25% on grains, which may lower China's corn exports this year.