October 29, 2010

CBOT soy at two-year high on China's demand

Soy futures rose to a two-year high on Wednesday (Oct 27) on speculation that China will increase oilseed imports to tame food price inflation.

Food prices in China climbed 8% in September compared to a year earlier, according to the National Bureau of Statistics.

China imported 250,000 tonnes of soyoil from South America this week, and a commodities price rally has ended on concerns that government regulators are preparing to take further steps to reduce speculation. Analysts expect China to intensify imports of US soy as well.

Soy futures for November delivery were up 0.4% a bushel on the Chicago Board of Trade, and the commodity has risen 36% since July when China began increasing its purchases of US soy.