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Soybeans Futures Reach Record for Second Day in Asia on Supply ConcernJuly 2nd, 2008Soybeans futures rose to a record for a second day on concern the worst Midwest flooding in 15 years may curb gains in production and inventories in the U.S., the largest producer and exporter. Corn and wheat also advanced. Soybeans gained as much as 0.8 percent after booking the biggest quarterly gain in 20 years. U.S. farmers may harvest 96.8 percent of the acres planted, down from an earlier forecast of 98.1 percent, the U.S. Department of Agriculture said June 30 in a report. The USDA projected inventories of 175 million bushels before next year's harvest, or 21 days of usage. ``The figures may be revised down further, as the report did not fully reflect the impact of the Midwest flooding,'' Kenji Kobayashi, an analyst at Kanetsu Asset Management Co. in Tokyo, said by phone today. Soybeans for November delivery rose 11 cents, or 0.7 percent, to $16.21 a bushel in after-hours trading on the Chicago Board of Trade at 2:07 p.m. Singapore time after reaching a record $16.2275. Prices have gained 91 percent in the past year. U.S. farmers intended to sow 74.533 million acres of soybeans, and about 95 percent of the crop was planted on June 29, leaving 3.7 million acres yet to plant, USDA data show. The USDA said June 30 harvested acreage would have been 1.3 million acres larger without the flooding. The price also rose on speculation U.S. inventories before the harvest will be smaller than the USDA's forecast on June 10. A three-month old farmers' strike in Argentina boosted demand for U.S. supplies, analysts said. Corn for FeedCorn rose for the first time in four days as rising crude oil rekindled speculation demand for the grain in biofuel production may increase, leading to a drawdown in inventories, Kobayashi at Kanetsu Asset Management said.Corn for December delivery added 6.5 cents, or 0.9 percent, to $7.585 a bushel at 2:09 p.m. Singapore time. Prices plunged the 30-cent maximum allowed by the exchange on June 30 after the USDA reports showed U.S. farmers planted more acres than they indicated three months ago and that crop conditions improved. Corn futures, which rose to a record $7.9925 on June 27, have more than doubled in the past year as global reserves are forecast to fall to a 24-year low by the end of August. September-delivery wheat was up 1 cent at $8.6575 a bushel on the Chicago exchange at 2:12 p.m. Singapore time. Prices fell 36 percent from a record $13.495 set on February 27 on speculation that global production will increase. Wheat prices were supported from speculation that producers of hog, cattle and poultry will seek the grain as an alternative to high-cost corn, analysts said. Australia Crop``At some point you will see a price rationing effect on demand,'' Simon Roberts, head of agricultural commodities at Australia and New Zealand Banking Group Ltd., said today in an interview with Bloomberg Television. ``Eventually high prices will cure high prices.''Rabobank Group said the likelihood of a rebound in output in Australia, forecast to be the world's third-largest exporter of the grain, improved after rain in June. Wheat production may be 20 million metric tons to 24 million tons, the bank said in a report e-mailed today, restating an earlier estimate. Australia's worst drought slashed the nation's wheat output the past two harvests, helping send global prices to a record. - Aya Takada in Tokyo and Jae Hur in Singapore at Bloomberg. Click here for your Free Soybean Futures Trading eGuide | |