May 30, 2007

 

Asia Grain Outlook on Wednesday: Prices ease on favorable US weather

 

 

Prices of imported grains in Asia are likely to ease slightly the rest of the week, following favorable wet weather in the U.S. over the weekend, traders said.

 

"Prices for corn, soybean and wheat are taking their cue from U.S. weather over the next two months as crops enter the critical growth stage," said Thomas Lee Bauer, head of research for Rabobank International in Singapore.

 

July corn futures on the Chicago Board of Trade dropped 11 1/2 cents to US$3.64 3/4 a bushel Tuesday as rain in the eastern corn belt over the weekend dispelled concerns over dryness in the region.

 

July soybean futures on the CBOT traded 15 cents lower Tuesday to finish at US$7.97 1/2 a bushel on improved crop conditions.

 

Premiums for corn delivered from the U.S. to Shanghai now range from US$1.95 to US$2.00 a bushel over the CBOT July contract, down from US$2.05 to US$2.10 a bushel a month ago, said an analyst with JCI Shanghai.

 

Premiums for corn delivered from the U.S. to Japan rose to US$2.50 a bushel over the CBOT July contract from US$2.30 a bushel earlier in the month, mainly due to higher freight costs, said a Tokyo-based trader.

 

Wednesday, soybean futures prices on the Dalian Commodity Exchange were lower due to a sharp drop in the stock market.

 

Traders said the drop in soybean prices was only due to the negative psychological effect of the fall in stock market, and should be temporary. The new benchmark January 2008 soybean contract settled RMB59 lower at RMB3,285 a metric tonne.

 

In India, State Trading Corp. Wednesday canceled a much-awaited tender to import up to 1 million tonnes of wheat due to high offers.