July 23, 2007

 

Asia Grain Outlook on Monday: Prices may be lower on weak CBOT trend

 

 

Prices of imported grains booked by Asian traders this week may be lower, tracking an expected weaker trend in Chicago Board of Trade futures.

 

For corn and soybean, the pricing scenario is now almost completely driven by U.S. weather, as planting of both these crops gathers pace in the U.S.

 

Expectations of wet weather this week may keep both corn and soybean futures lower.

 

For wheat, the harvesting season in U.S. is nearing, and with an expected on-year rise in output, prices are unlikely to show much gain over the next several weeks.

 

In Asia, some feedbuying groups in South Korea may seek corn and soymeal in tenders this week.

 

In other deals, Japan's Ministry of Agriculture is expected to float a tender to purchase wheat Tuesday.

 

Last week, the ministry bought only 70,000 tonnes of wheat from the U.S. in its weekly tender, which was less than its usual quantity. It also didn't buy any wheat from usual suppliers Canada and Australia.

 

It remains to be seen whether the ministry will increase its import volume this week.

 

Meantime, in potentially bearish news for world wheat prices, India's wheat output may rise to 74.89 million tonnes from 69.45 million tonnes last year.

 

Higher domestic wheat output is likely to sharply reduce India's wheat imports, which totaled around 6.5 million tonnes in 2006.

 

So far this year, India's State Trading Corporation has imported 511,000 tonnes of wheat in tenders.