US soy prices fall on rising China inflation

Soy prices fell Thursday (March 11) on concerns about waning demand in China and news of cancelled US exports of soy last week.

Wheat and corn prices also edged lower, but fared far better than soy because neither is exported to China, said an analyst.

The 2.7% increase in China's consumer prices last month was driven by a 6% jump in food costs, which is a key worry in a country where poor families spend up to 40% of their incomes on food.

China is a significant buyer of US soy, so the inflationary report raised fears that the country may impose a fresh round of restrictions on credit, the analyst said.

In addition, the USDA reported that sales of 115,000 tonnes of soy were cancelled in the past week.

Soy for May delivery fell 27.5 cents to settle at US$9.305 a bushel. Wheat for May delivery fell 2.75 cents to US$4.7875 a bushel while May corn fell 0.25 cents to us$3.6525 a bushel.