Chicago grain futures advance over expected rainfall, rising China demand

11:03, April 17, 2010      

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Wheat futures in the Chicago Board of Trade hit 6-week-high on Friday, benefiting from expected rainfall and rising demand from China.

Soybean and corn both firmed, despite the news that the U.S. Securities and Exchange Commission charged Goldman Sachs Group Inc. with fraud has sparked some risk aversion in commodities markets.

Soybean future for July delivery gained 2 cents to settle at 9.95 U.S. dollars per bushel. May corn rose 0.75 cents to 3.64 dollars a bushel. July wheat was up 9.75 cents to 5.025 dollars a bushel.

Wheat surged as market welcomed the news that China may import 2 million tons of wheat this year,compared with estimated purchase of 481,000 tons in the year that ended June 2009.

Traders also noted that some fields in Texas have already been at saturation point due to recent rainfall. The speculation that heavy rain is expected in the southern plains in the U.S. in the next few days may make it unsuitable for wheat growth has added to the upward pressure on wheat price.

Meanwhile, the report that China may import corn from the U.S has helped lift corn price to offset the negative impact of the rallied dollar and weaker oil. But the beneficial crop weather in the U.S. corn belt has continued to keep a lid on corn.

The news that soybean import of China may reach 5 million tons in June offered fundamental support to soybean price.

Source: Xinhua


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