April 9, 2012
 

Optimistic US grain outlook: soy prices, exports, futures up

Soy futures rose 0.6% and kept at a seven-month high, as large speculators increased their net long position on Chicago Board of Trade soy futures and options for a ninth consecutive week.

With South American crop forecasts constantly being revised downwards, expectations of increased demand for US soy in the export market has been boosting US soy prices. USDA data released on April 5 also showed weekly US soy export sales topped 1 million tonnes, above trade expectations. 

The USDA report also showed strong demand for US grain supplies, pushing corn and wheat up by around 0.5% in early Asian trade. Corn exports also exceeded trade expectations. The largest weekly corn sales over the last five and a half months of 394,000 tonnes to China, is its biggest purchase since October.        

This spring, farmers have been planting corn at the fastest pace ever in the US Midwestern grain belt. Fears of damage to corn crops due to upcoming cold weather in parts of the region have been dismissed by meteorologists, who think the effects will be mitigated.        

The outlook is also optimistic for wheat as top importer Egypt bought 115,000 tonnes of US soft red winter wheat.