November 16, 2011
CBOT soy price rises as demand increases
CBOT soy prices jumped higher on Monday (Nov 14) and cheap price offers may help revive demand from buyers like.
The most active corn contract for December delivery dropped five cents, or 0.8%, to close at $US6.34 per bushel. December wheat fell one cent, or 0.2%, to US$6.16 per bushel. January soy rose 2.75 cents, or 0.2%, to close at US$11.78 per bushel.
A report released by USDA showed that last week's export inspection for soy reached 53.5 million bushels, which was well above trade expectations, while China accounted for 35.2 million bushels of the total for the week.
A trader said recent sharp decline in US soy price is quite attractive to buyers from China and other countries, lifting market sentiment.
Meanwhile, the grain market was supported by increasing market optimism, after Italy and Greece put in place new governments to shore up the countries' finances, while it was also weighed by the newly-gained strength in US dollar, as a firmer dollar makes US grain exports more expensive on world markets.
As for corn market, corn price continued to struggle on Monday, amid speculations that US feed producers on the east coast may be importing feed wheat as an alternative for corn, even the strength in soy complex failed to lift up the corn trade.
Wheat continued to drop as the government report showed that last week's export inspection for wheat only totalled 10.35 million bushels, well below trade expectation.