February 4, 2008

 

Asia Grains Outlook on Monday: Soybeans may rise on bullish CBOT

 

 

Soybean prices may rise this week on bullish Chicago Board of Trade soybean futures.

 

Friday, CBOT soybean futures hit two-week highs as fresh funds entered soybean futures amid bullishness in soyoil prices and lingering concerns about Brazil's soybean harvest.

 

At 0521 GMT, CBOT March soybean was 11.6 cents higher than Friday's U.S. close, at US$12.99/bushel.

 

However, in potentially bearish news for soybeans, Chinese buying is likely to slow down this week as the Lunar New Year holidays begin.

 

Last week, Chinese importers bought around 7-9 cargoes, down from 15-17 cargoes in the preceding week, said commodities analysis firm Shanghai JCI. Most Chinese importers have already bought their supplies for the Lunar New Year and are pausing before buying for future months.

 

Around half of China's soybean purchases last week came from the U.S., with the rest coming from Brazil and Argentina.

 

In deals last week, South Korea's Korea Feed Association bought 100,000 metric tonnes corn in private negotiations, while Nonghyup Feed Inc. rejected all offers in a tender to purchase 275,000 tonnes of corn, citing high prices.

 

In other significant grain news, after initial concerns about lower planted acreage, the outlook for India's wheat crop seems bright on good weather conditions. The crop, harvesting of which will begin later this month, is being keenly eyed in wheat markets as a small crop size would lead to significant Indian imports.

 

"Current weather patterns, mainly light rains and cold weather in wheat growing areas, is good for development of the standing wheat crop," N.B. Singh, India's federal farm commissioner told Dow Jones Newswires.