October 20, 2008
Soy advanced for a second day on speculation China's plan to increase purchases of new-crop oilseeds may support global prices. Corn gained.
Five trading executives familiar with the situation said, Sunday, 19 October 2008 China, the world's biggest soy importer will seek to buy soy as a record local harvest and slumping prices threaten farm incomes. The government may buy 1 million tonnes starting in November in the main northeast growing region, where prices have fallen 15 percent in the past month.
Dong Shuangwei, analyst at Beijing Capital Futures Co said this report has given the market some temporary support as it fits in with the government's overall plan to boost farming income.
Soy for January delivery jumped as much as 28.25 cents, or 3.2 percent, to US$9.085 a bushel, in electronic trading on the CBOT. They were at US$8.9925 at 12:37 p.m. Singapore time. The most active contract is 45 percent below its record US$16.3675 July 3.
China National Grain and Oils Information Center data show China imports about 70 percent of the soy it consumes.
Corn for December delivery gained as much as 12.50 cents, or 3.3 percent, to US$3.97 a bushel, and last traded at US$3.9350. The most-active contract has slumped 50 percent from its record US$7.9925 June 27.
On the Dalian Commodity Exchange, soy for May delivery jumped as much as the exchange-imposed 5 percent limit to RMB 3,211 (US$470) a tonne, and last traded at RMB 3,197.