Soybeans drop in Chicago as China poised to release stockpiles
Wednesday, 22 July 2009
BEIJING, July 21 (Bloomberg): Soybean futures in Chicago declined on speculation that crushers in China, the world’s biggest importer, may slow overseas purchases as the government releases local stockpiles for sale into the domestic market.
China will auction 500,000 tonnes of soybeans on July 23, the state-backed China National Grain and Oils Information Center said yesterday. The sale is meant to ensure local supplies are adequate and to stabilize prices, the center said in a separate report July 17.
“That’s one of the main reasons” soybean prices fell, Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said today. Prices are “coming back from an awful big high. This is just a correction,” he said.
Soybeans for November delivery fell as much as 0.8 per cent to $9.1550 a bushel in after-hours electronic trade on the Chicago Board of Trade, after adding 0.2 per cent earlier. The contract traded at $9.1650 at 2:40 p.m. in Singapore.
The most-active soybean futures contract has fallen 26 per cent from a nine-month high of $12.365 on June 5 on concern that favorable weather in the U.S. will boost yields in the world’s biggest grower and exporter, increasing global supplies.
China’s soybean imports totaled a record 4.71 million tons in June, according to customs data. The sale from state stockpiles planned for next week would be 11 per cent of that figure, according to Bloomberg calculations.
Wheat for September delivery was little changed at $5.4275 a bushel in Chicago at 2:41 p.m. Singapore time, after declining as much as 0.4 per cent earlier.
Weather in the northern plains of the U.S. will help developing wheat crops, DTN Meteorlogix LLC said in a report yesterday. No significant delays to the remaining harvest are expected in the eastern Midwest, it said. The Midwest is the largest growing region in the U.S.
China will auction 500,000 tonnes of soybeans on July 23, the state-backed China National Grain and Oils Information Center said yesterday. The sale is meant to ensure local supplies are adequate and to stabilize prices, the center said in a separate report July 17.
“That’s one of the main reasons” soybean prices fell, Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said today. Prices are “coming back from an awful big high. This is just a correction,” he said.
Soybeans for November delivery fell as much as 0.8 per cent to $9.1550 a bushel in after-hours electronic trade on the Chicago Board of Trade, after adding 0.2 per cent earlier. The contract traded at $9.1650 at 2:40 p.m. in Singapore.
The most-active soybean futures contract has fallen 26 per cent from a nine-month high of $12.365 on June 5 on concern that favorable weather in the U.S. will boost yields in the world’s biggest grower and exporter, increasing global supplies.
China’s soybean imports totaled a record 4.71 million tons in June, according to customs data. The sale from state stockpiles planned for next week would be 11 per cent of that figure, according to Bloomberg calculations.
Wheat for September delivery was little changed at $5.4275 a bushel in Chicago at 2:41 p.m. Singapore time, after declining as much as 0.4 per cent earlier.
Weather in the northern plains of the U.S. will help developing wheat crops, DTN Meteorlogix LLC said in a report yesterday. No significant delays to the remaining harvest are expected in the eastern Midwest, it said. The Midwest is the largest growing region in the U.S.