April 14, 2008

 

Asia Grain Outlook on Monday: Corn, soybeans likely to track US weather

 

 

Corn and soybean prices are evenly poised in the week ahead, as Chicago Board of Trade futures are likely to closely follow planting weather in the U.S.

 

While the market is still factoring in an expected drop in corn acreage and rise in soybean acreage in the U.S. this year, attention has now turned to actual weather conditions in the U.S. as farmers begin preparatory work for sowing these crops.

 

In deals last week, Nonghyup Feed Inc bought 165,000 metric tonnes of U.S. corn for August-November delivery.

 

Also, Japan's Ministry of Agriculture bought 70,000 tonnes of imported wheat in a tender last week.

 

China's soybean imports are likely to keep recovering this week, following last week's trend, when Chinese importers bought 9-11 soybean cargoes from South America compared with 5-7 cargoes in the preceding week, mostly because of farmers suspending a strike in Argentina.

 

If the strike were to resume, however, there may be a drop-off in import volumes.

 

Meanwhile, a Chinese government official said Monday the country will control expansion of the soybean processing industry by curbing new production capacities.

 

He Yanli, deputy chief of the industrial department under the National Development and Reform Commission, also told a grain and edible oil conference that "we need to consider how much soybean imports are suitable for us."

 

In other news, India's basmati rice exports in the calendar year ending Dec. 31 are likely to remain unchanged at 1.2 million tonnes compared with the previous year, as basmati output has remained flat on year, said R.S. Seshadri, director of export firm Tilda Riceland.