April 25, 2007

 

Asia Grain Outlook on Wednesday: Corn may rise on likely CBOT gains

 

 

Premiums for corn delivered to Asia may rise in the week ahead, tracking Chicago Board of Trade corn futures.

 

Forecasted wet weather for the next several days in the U.S. is likely to disrupt sowing of both corn and soybeans.

 

There is always the concern that too much of a delay in planting of corn may dissuade farmers thinking of switching to planting corn from soybeans.

 

The U.S. Department of Agriculture had on March 30 said that U.S. farmers may plant a historically high corn crop this year, buoyed by high prices over the past several months.

 

In Asia, wheat trade is likely to be subdued this week, as Japan's Ministry of Agriculture, Forestry and Fisheries has decided not to hold any purchase tenders until May 8.

 

In deals so far this week, Taiwan Sugar Corp. bought 23,000 metric tonnes of corn and 12,000 tonnes of soybeans, both of U.S. origin, from trading house Agrex at a tender concluded Tuesday.

 

At present, soybeans delivered to Taiwan from the U.S. are at a premium of 204 U.S. cents/bushel to the CBOT July contract.

 

The premium for corn delivered to Taiwan from the U.S. is at 204.97 U.S. cents a bushel to the CBOT July contract.

 

It seems quite unlikely that the pace of imports for corn or soybeans will pick up in the remaining part of this week as high ocean freight costs and fluctuating CBOT grain prices keep traders cautious about making import commitments.