Soybeans in demand at Chicago
Futures for soybeans show a constant rise the last few days at Chicago and reached a six-week high on improved demand for animal feed and vegetable oils. Corn futures were little changed, while wheat gained amid speculation about weather damage to the US crop.
Soybeans rose this week after it was released National Oilseed Processors reported and
increased output by 6.1% in April from a year earlier. Demand for soybean oil
may increase as the price of rival palm oil reached its highest in more than
eight years after Indian data showed imports at a four-month high in
April.
Soybeans are the second-biggest U.S. crop, valued at $19.7 billion
in 2006, behind corn at a record $33.8 billion in 2006, government figures
show.
Wheat, the fourth biggest crop behind hay, with a value of $7.7
billion, gained 1.1% this week on speculation wet weather will promote disease
in the US crop.
Canada strike
The Chicago wheat market was also
supported after Canadian Pacific Railway Ltd. track maintenance workers went
on strike. Canada is the world’s second-largest wheat
exporter after the US.
If the strike continues there will definitely be
an impact on the market, trade specialists say.
A futures contract is an
obligation to buy or sell a commodity at a set price for delivery by a specific
date.
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