February 18, 2009

Soy futures declined for a fifth day on speculation that US farmers may plant more area to the oilseed at the expense of corn crops.

US farmers may plant 5 percent more soy in 2009 than they did last year and cut corn acreage by 2.4 percent, a farm survey showed.

Corn dropped 3.7 percent last week, losing for the sixth straight week, and soy lost 4.3 percent on concerns that the global recession will reduce demand for food, animal feed and alternative fuel.

Mitsubishi Corp. Futures & Securities Ltd. research team chief in Tokyo, Tomokazu Amano said the market will pay close attention to any change in planting acreages for corn, soy and wheat this year.

Amano said the market will trade in a current range until we see the exact numbers for planting acreages.

Soy for March delivery fell as much as 1.6 percent to US$9.42 a bushel, the lowest since February 3, in electronic trading on the CBOT.

Prices have declined 42 percent from a record US$16.36 on July 3.

Corn for March delivery was 0.4 percent down at US$3.61 a bushel where futures have plunged 55 percent from a record US$7.99 on June 27.

China's imports of soy fell 12 percent to 3.03 million tonnes in January from a year earlier, while soybean oil purchases plunged 87 percent to 20,000 tons, the customs office said citing preliminary data.