April 27, 2010

US soy futures loses gain on sign of slower exports

Soy were little changed in Chicago, paring gains after reaching a three-month high, on signs that importers are reducing purchases from the US, the biggest exporter.

US officials inspected 8.029 million bushels for export in the week ended April 22, less than half the 16.362 million a week earlier, according to USDA data. China accounted for 30% of the total, down from 44% a week earlier. The combined output in Brazil and Argentina, the biggest exporters after the US, will jump 35%, the USDA said.

Analysts said Chinese demand for US soy may be shifting to newly harvested crops in South America. Meanwhile, soy futures for July delivery were up 0.2 cent, or 0.02%, to US$10.1025 a bushel at 12:15 p.m. on the CBOT.

Earlier, the price touched US$10.20, the highest price since January 11. The most-active futures rose 7.3% this month on increased Chinese demand for US oilseeds after farmers in South America withheld supplies for higher prices.

The soy crop in the US was valued at US$31.8 billion last year, second only to corn, government figures show.