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Will Soybean Price Rise with Increasing Demand in China?

March 24, 2010 at 20:11 by Vladimir Vyun

Analysts think that soybean imports by China, the largest buyer in the world, may rise to a record as increased crusher capacity and growing demand for livestock feed may put strain on global supplies. The country consumes more than half of the global soybean exports. China plans to import about 45 million metric tons in the year ending September 30th, 5.9 percent more than previously predicted. While soybean meal consumption fell since January, this decline is considered to be temporary and demand should rebound in the near future.

Yet some analysts are rather pessimistic about soybeans prices. They insist that even with increasing Chinese import supply may exceed demand. World production increased 40 million tons (20 percent) this year, partly because of record harvests in Brazil and Argentina. The contract for May delivery traded at $9.6050 per bushel in Chicago today. Soybean futures fell 8.4 percent this year.

If you have any questions and comments on the commodities today, use the form below to reply.

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