December 5, 2007

 

US soy exports rise by 7 percent

 

 

Export sales of US soy rose the most in more than a week on speculation that demand would climb overseas.

 

Soy, the country's second biggest crop, was up by 7 percent in the year that began September 1 from a year earlier, the Department of Agriculture reported.

 

Sales to China, the world's biggest buyer, are up 29 percent. Since October 1, sales of soymeal were up 7.6 percent.

 

Nate Smith, a market analyst and broker at the Linn Group in Chicago, pointed that more people are talking about increased poultry feed demand in Asia.

 

Soy futures for January delivery climbed 1.2 percent, to US$10.91 a bushel on the Chicago Board of Trade, the biggest percentage gain since November 23. Most active futures climbed 60 percent this year after US farmers planted the fewest acres in 12 years. The price reached a 34-year high of US$11.14 on November 26.

 

Smith added that the demand for soymeal is also climbing due to higher hog and chicken production.

 

The number of chicks placed on feed rose 4.1 percent to US$168.8 million from the year-earlier week, the USDA said. About 822.5 million chickens were processed in October, up 15 percent from the previous month and up 4.6 percent on-year.

 

Pork processors including Smithfield Foods slaughtered a record 2.4 million hogs last week, up 11 percent from a year earlier.

 

Soy prices also escalated on a reduced forecast for the crop in Brazil, the second-largest grower after the US.

 

Last year, US soy crop was valued at US$19.7 billion, behind corn at US$33.8 billion.