July 9, 2007

 

Asia Grain Outlook on Monday: Prices may rise on bullish CBOT futures

 

 

Prices of imported grains in Asia may rise in the week ahead, tracking bullish sentiment in Chicago Board of Trade grains futures.

 

While corn and soybean are likely to post gains in CBOT because of the near-term dry weather outlook for growing regions in U.S. that may affect planting of both crops, demand for U.S. wheat continues to remain robust.

 

In Asia, Taiwanese traders may become more active this week, with likely tenders for wheat, corn and soybean.

 

Asian buyers are stocking up for the last quarter of 2007, trying to lock in prices of U.S. corn and soybean crops, harvesting for which will begin late September.

 

Meantime, the Indian government may announce the results of its 1-million-tonne wheat import tender on Wednesday. Most analysts are skeptical whether the government will buy any wheat, as the bids are quite high, in the US$320-370/tonne range.

 

In May, the government rejected all bids in a 1-million-tonne wheat tender as it considered the US$265-302/tonne bids too high.

 

In China, rising soybean prices in the international market may continue to discourage importers.

 

Commodity analysis firm JCI Shanghai said that soybean stocks at Chinese ports are mounting, while soymeal demand from feed companies is weak.

 

It added that imported soybean stocks at Chinese ports were 3.15 million tonnes as of July 5.

 

Last week, Chinese crushers made very limited purchases of Argentine soybeans, all for shipment in August, paying a premium of 125-132 U.S. cents/bushel to the CBOT September soybean contract.