March 3, 2008

 

Asia Grains Outlook on Monday: Soybeans may continue gains on CBOT lead

 

 

Soybean prices are likely to rise in the week ahead, as continued demand for soy products and tight supplies keeps Chicago Board of Trade futures on a bullish path.

 

After soaring to record highs U.S. trading Friday, CBOT soybean futures continued to climb in electronic trading Monday.

 

At 0511 GMT, the May soybean contract is trading 27 U.S. cents higher than Friday's U.S. closing, at US$15.63/bushel.

 

In Asia, the world's largest soybean importer, China, is slowing its soybean imports somewhat as CBOT prices soar.

 

Last week, Chinese soybean importers booked 5-7 soybean cargoes, all from South America, down from 9-11 cargoes the preceding week, for April-June shipment.

 

In further bullish news for global oilseeds and edible oil prices, India's rapeseed production will decline 15.4% on year to 5.09 million metric tonnes in 2008, the Central Organization of Oil Industry and Trade said Sunday.

 

Lower output of rapeseed, the major winter oilseed crop, could lead to an increase in the country's edible oil imports this year. India imports half its edible oil needs.

 

In other grain news, Japan's Ministry of Agriculture may seek imported wheat in its weekly tender Tuesday, after skipping wheat imports last week. The ministry didn't give any reasons for skipping the tender.