Soybeans climb as dollar weakens
Tuesday, 11 May 2010
SYDNEY, May 10 (Bloomberg): Soybeans advanced as the dollar dropped, making US crop supplies more attractive to investors and importing countries.
July-delivery soybeans increased as much as 0.7 per cent to $9.6675 a bushel on the Chicago Board of Trade and traded at $9.6625 at 2:05 p.m. in Singapore.
The Dollar Index, which tracks the value of the US dollar against six major currencies including the euro, fell for a second day, as European leaders unveiled an unprecedented loan package worth almost $1 trillion to stop a sovereign-debt crisis.
"The US dollar is under pressure," Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by phone today. "We're seeing some of the commodities trade higher on the back of the dollar."
China's soybean imports rose 10 per cent to 15.2 million tons in the first four months from a year ago, according to customs figures. Imports rose to 4.2 million tons in April from 4.01 million tons in March and 3.71 million tons a year earlier, according to Bloomberg calculations.
China, the largest soybean importer and second-largest corn consumer, will struggle to repeat bumper harvests of the past six years, after experiencing the worst drought in over 50 years in the southwest and snow and flooding in the north, Fang Yan, deputy director of the Rural Economy Department at the state planning agency, said last week.
Rains and floods have affected 100,000 hectares of crops and leveled 10,000 buildings in China's southern provinces, state-owned CNTV said May 8.
July-delivery corn gained 0.3 per cent to $3.73 a bushel, erasing a 0.5 per cent loss.
Sixteen of 31 traders surveyed from Chicago to Tokyo on May 7 said corn will advance on speculation China will buy more US supplies, encouraging purchases by other customers.
Wheat for July delivery fell as much a 0.9 per cent to $5.06 a bushel, before trading at $5.09 a bushel.
July-delivery soybeans increased as much as 0.7 per cent to $9.6675 a bushel on the Chicago Board of Trade and traded at $9.6625 at 2:05 p.m. in Singapore.
The Dollar Index, which tracks the value of the US dollar against six major currencies including the euro, fell for a second day, as European leaders unveiled an unprecedented loan package worth almost $1 trillion to stop a sovereign-debt crisis.
"The US dollar is under pressure," Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by phone today. "We're seeing some of the commodities trade higher on the back of the dollar."
China's soybean imports rose 10 per cent to 15.2 million tons in the first four months from a year ago, according to customs figures. Imports rose to 4.2 million tons in April from 4.01 million tons in March and 3.71 million tons a year earlier, according to Bloomberg calculations.
China, the largest soybean importer and second-largest corn consumer, will struggle to repeat bumper harvests of the past six years, after experiencing the worst drought in over 50 years in the southwest and snow and flooding in the north, Fang Yan, deputy director of the Rural Economy Department at the state planning agency, said last week.
Rains and floods have affected 100,000 hectares of crops and leveled 10,000 buildings in China's southern provinces, state-owned CNTV said May 8.
July-delivery corn gained 0.3 per cent to $3.73 a bushel, erasing a 0.5 per cent loss.
Sixteen of 31 traders surveyed from Chicago to Tokyo on May 7 said corn will advance on speculation China will buy more US supplies, encouraging purchases by other customers.
Wheat for July delivery fell as much a 0.9 per cent to $5.06 a bushel, before trading at $5.09 a bushel.