Commodity Blog

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Forecasts for Soybeans Import, Oil Shortages, Steel Demand

January 19, 2010 at 0:00 by Vladimir Vyun

Analysts predict that soybeans imports in China may remain high in March as “lower costs boost crushing margins”. The margin rose to $46 per metric ton by January 13th. Imports of soybeans in China are expected to reach 4.2 million tons in January causing concern about oversupply.

Some analysts forecast shortages for crude oil as supply is unable to catch up rebounding demand. Worldwide oil consumption will return to pre-crisis level at the third quarter of 2010, while projects for new oil sources are “still lagging as a result of the credit crunch”. Crude oil futures reached $78 per barrel level today in New York.

Demand for steel may drop with lending cuts in China, the biggest consumer in the world. Steel production in China increased 13 percent to 565 million tons in 2009 as demand from builders, home-appliance manufacturers and automakers was boosted by China’s $586 billion stimulus spending. China’s steel output may rise 5 to 10 percent exceeding 600 million metric tons in 2010.

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