Soybeans soar as inclement weather hurts production

(China Daily)
Updated: 2010-04-27 10:36
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SINGAPORE: Soybeans advanced to the highest level in more than three months on speculation that cold weather may curb planting in China, boosting demand from the world's largest consumer.

Commodities rallied as economic reports pointed to faster growth and concerns about Greece's debt abated.

Soybeans for July delivery gained as much as 1 percent to $10.20 a bushel, the highest price for the most-active contract on the Chicago Board of Trade since Jan 11.

Twenty-four out of 34 traders and analysts surveyed on April 23 said soybeans would gain this week as cold, wet weather in China hurt production, boosting demand for supplies from the United States, the world's largest exporter. Northeast China will have cold weather during the seven days from April 23, Telvent DTN Inc said in a report released that day.

"Forecasts of cold weather in China could mean that nation will need to buy more soybeans," Eric Bailon, president at Paritas Trading Corp, said by phone from Manila. "US farmers may also be holding off sales on expectations that prices will keep rising."

China's northeastern Heilongjiang province, the country's biggest soybean producer, may reduce planting by 7.9 percent, or 5.6 million mu (373,333 hectares), to 65 million mu (4.3 million hectares), the China National Grain and Oils Information Center said.

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DTN said a cold and snowy spring has delayed the planting of soybeans, corn and spring wheat in Northeast China.

July-delivery corn rose as much as 0.9 percent to $3.6425 a bushel, before trading at $3.64 a bushel. Nineteen of 34 traders and analysts surveyed from Chicago to Tokyo on April 23 said corn will rise this week.

Wheat for July delivery jumped as much as 1.7 percent to $5.14 a bushel and was at $5.12 a bushel, 1.2 percent higher, at 3:41 pm Singapore time.

Bloomberg News