February 25, 2008

 

Asia Grain Outlook on Monday: Prices to soar on CBOT bullishness

 

 

Grain prices will likely rise in Asia this week, tracking Chicago Board of Trade bullishness.

 

While the sharpest gains will likely be in soybean and wheat, corn may also rise on spillover support.

 

Soybean futures settled at all-time highs on CBOT Friday, as continued demand from Chinese buyers pushed prices higher.

 

Soybeans continued to make gains in Asian morning trade Monday. At 0515 GMT, CBOT March soybean was up 22.4 cents from Friday's U.S. closing at US$14.42 a bushel.

 

Chinese importers booked nine to 11 soybean cargoes from South America in the week ended Feb. 22, up from seven to nine cargoes in the preceding week, according to a report Monday by commodities analysis firm Shanghai JCI.

 

The cargoes are expected to be delivered in April, May and June. Chinese buyers are enthused by falling cash soybean prices in South America ahead of harvesting. China's soyoil demand is expected to increase on concerns of reduced rapeseed output in China a result of heavy snowstorms in the country's south, said JCI.

 

Wheat prices continue to rise on record-low wheat inventories.

 

Traders in the U.S. said there are no signs of short-term weakness in wheat futures and prices could rise even higher in the next few sessions.

 

At 0515 GMT, the CBOT March wheat contract was up 29.4 cents at US$10.79/bushel.