June 18, 2010

Soy futures climb to its first weekly gain in eight weeks after rainfall in Canada has delayed plantings, boosting demand of the rapeseed crop.

Soy futures in Chicago have risen 1.8% this week, the first such gain since April 23. Excess rain in Canada, the largest rapeseed exporter, means as much as 12.5 million acres (5.1 million hectares) of farmland won't be planted this year, the Canadian Wheat Board said on June 11.

"Wet conditions in Canada have pushed wheat as well as soy," said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co. More rain is forecast in the coming days in the North American nation.

Soy for November delivery rose as much as 0.4% to US$9.29 a bushel on the Chicago Board of Trade and traded at US$9.26 a bushel at 2:12 p.m. Singapore time. Futures are poised for a 1.8% gain this week, the first such rise for the most-active contract since the week ended April 23.

Rapeseed for November delivery retreated 1% to CAD 422 (US$410.63) a tonne on the ICE Futures Canada exchange today. Soy, rapeseed and another rapeseed variety, are used to produce animal feed, vegetable oils and biodiesel.

Korea Agro-Fisheries Trade Corp., a state-run food importer, issued a tender to buy 30,000 tonnes of non-genetically modified yellow soy for food use for delivery by Sept. 5. The tender will be on June 24.

Wheat for September delivery fell 0.1% to US$4.78 a bushel at 2:19 p.m. Singapore time. The contract has advanced 4.9% this week, the second straight weekly gain, as wet weather curbed planting in Canada and delayed the harvest in the southern Great Plains of the US.