Soybeans advance on speculation demand may pare us inventory
Friday, 4 December 2009
SINGAPORE, Dec 3 (Bloomberg): Soybeans climbed on speculation the US Department of Agriculture may raise its estimates on the nation's exports of the beans and demand from crushers, lowering stockpiles at the end of the marketing year.
Soybean stockpiles may be 240 million metric tonnes by August 31, Allendale Inc., a farm marketing adviser and brokerage said in an e-mail Wednesday. That's compares with the 270 million tonnes inventory forecast by the USDA on November 10.
Expectations of higher demand may be pushing prices higher in early electronic trading, said Toshiro Horiguchi, assistant general manager at Agrex Asia Pte., in a phone interview Thursday. Prices may still extend recent declines because the increase in demand has already been priced in and "we have good supply."
January-delivery soybeans climbed as much as 1 per cent to $10.44 a bushel in after-hours trading on the Chicago Board of Trade, after closing 2.4 per cent lower Wednesday. The contract traded at $10.4325a bushel at 1:46 p.m Singapore time.
"Both crush and exports are running better than expected," Joe Victor, vice president at Allendale said in an e-mail yesterday. "We look for USDA to revise those higher." The USDA is scheduled to report its latest estimate on US soybean supply and demand estimates on December 10.
March-delivery corn gained as much as 0.6 per cent to $4.09 a bushel in Chicago, after ending 1.9 per cent lower Wednesday. It traded at $4.0775 a bushel at 1:46 p.m Singapore time.
Wheat for March delivery added as much as 0.9 per cent to $5.81 a bushel, after losing 1.4 per cent at close Wednesday. It last traded at $5.78, up 0.4 per cent.
Soybean stockpiles may be 240 million metric tonnes by August 31, Allendale Inc., a farm marketing adviser and brokerage said in an e-mail Wednesday. That's compares with the 270 million tonnes inventory forecast by the USDA on November 10.
Expectations of higher demand may be pushing prices higher in early electronic trading, said Toshiro Horiguchi, assistant general manager at Agrex Asia Pte., in a phone interview Thursday. Prices may still extend recent declines because the increase in demand has already been priced in and "we have good supply."
January-delivery soybeans climbed as much as 1 per cent to $10.44 a bushel in after-hours trading on the Chicago Board of Trade, after closing 2.4 per cent lower Wednesday. The contract traded at $10.4325a bushel at 1:46 p.m Singapore time.
"Both crush and exports are running better than expected," Joe Victor, vice president at Allendale said in an e-mail yesterday. "We look for USDA to revise those higher." The USDA is scheduled to report its latest estimate on US soybean supply and demand estimates on December 10.
March-delivery corn gained as much as 0.6 per cent to $4.09 a bushel in Chicago, after ending 1.9 per cent lower Wednesday. It traded at $4.0775 a bushel at 1:46 p.m Singapore time.
Wheat for March delivery added as much as 0.9 per cent to $5.81 a bushel, after losing 1.4 per cent at close Wednesday. It last traded at $5.78, up 0.4 per cent.