February 18, 2008

 

Asia Grains Outlook on Monday: Soybeans may keep rising on CBOT gains

 

 

Soybean import prices in Asia are likely to keep rising in the week ahead on expected gains in Chicago Board of Trade futures.

 

News that 40% of China's rapeseed crop has been damaged by recent snowstorms continues to feed the bulls, as China - the world's largest importer of soybeans - may need to import more this year to meet domestic demand for edible oils.

 

Analysts said that there is no significant selling pressure on CBOT soy futures and unless some compelling bearish factors emerge, prices may keep rising.

  

 

Wheat Demand Slow

  

Demand for wheat continues to be steady in Asia, with countries such as Japan, Indonesia and Taiwan continuing to buy the grain despite high prices.

 

"Asian wheat demand is steady at present. While many buyers have (bought) up to June and July, there are others who are still out in the market as they may have put off buying" as they wait (without success) for prices to fall, said Mark Samson, vice president for South Asia at U.S Wheat Associates, a growers' lobby group.

 

Japan, which buys around 5 million metric tonnes of wheat annually, is continuing to buy an average 100,000 tonnes or more in its weekly tenders, despite sharp price rises. The government bought 190,000 tonnes of wheat of U.S, Canadian or Australian origin in a tender last Thursday.

  

 

Corn Prices High

  

An official with a major Seoul-based feed buying group, Korea Feed Association, said corn imports may remain somewhat slow in the next few weeks, due to high prices and expectations of rising ocean freight costs.