May 27, 2009
Asia Grain Outlook on Wednesday: Soys may get support from China demand
Soy prices are likely to remain supported over the near term, as Chinese demand is likely to be better than expected.
According to a Barclays Capital analyst report Wednesday, China's commerce ministry is forecasting 4.11 million metric tonnes of soy imports in June, higher than their previous estimate of 2.8 million tonnes.
Imports in May are estimated at 4.29 million tonnes, against earlier projections of 3.66 million tonnes.
In Wednesday's electronic trade, Chicago Board of Trade soy contracts have continued to build on overnight gains in pit trading.
At 0545 GMT, the CBOT July soy contract was trading 7.6 cents higher at US$11.93 a bushel.
In news supportive of global grain prices, the new Indian government is seemingly reluctant to ease export bans on rice and wheat, in place since early last year.
Addressing his first press conference after beginning his second term as the country's agriculture minister, Sharad Pawar said he's in no hurry to lift the bans and would carefully evaluate the condition of domestic food grain stocks before arriving at any decision.
He said the government's top priority is distributing rice and wheat at highly-subsidized prices to low-income families.
