August 30, 2007

Global soybean prices unlikely to weaken in short term
 

Global soybean prices are unlikely to weaken much in the short term, as fundamentals should remain supportive, Timothy Loh, director of marketing for the American Soybean Association in South-east Asia told Dow Jones Newswires Thursday (Aug 30).

Loh said soybean consumption remains strong, especially with added demand for soyoil, which is used to create biodiesel.

On Wednesday, the Chicago Board of Trade November soybean contract settled 2 cents higher at US$8.74 1/4.

Loh said higher freight costs are also pushing up soybean prices for Asian importers.

Ocean freight costs have doubled since the beginning of the year, as more tonnage is being used up to haul iron ore and coal amid high global demand, especially from China.

He said the issue of where soybean prices are headed would figure prominently at the fourth South-east Asia-US Agricultural Cooperators Conference in Perth, Australia, from Sep 4.

The conference will have representatives from the American Soybean Association and the US Grains Council, besides traders and industry officials from feed milling companies and grain trading firms in Asia.

The conference will see experts analysing supply and demand and the price outlook for wheat, corn and soybeans.