***** Next Master the Markets Foundation Course 1.5 days - Sept 14-15, 2009. Call Dolly at 03 4252 4149 to enroll ! ***** The Importance of Being A "Honest" Trader :-) martin_tf_wong@hotmail.com: 8:04 am - Soybeans hit record on Chinese demand

Saturday, February 16, 2008

8:04 am - Soybeans hit record on Chinese demand

NEW YORK (AP) - Soybean futures rose to a record Friday, surpassing $14 a bushel for the first time amid expectations of rising demand in China for the grain used to feed livestock and make biofuel. Other commodities traded mixed, with crude oil futures ending about flat and gold and silver edging lower. Soybean prices have surged 9.5 percent so far this year, buoyed by dwindling stockpiles and growing demand in China, the world's largest soybean buyer. On Thursday, China's agriculture minister said that bad winter storms had severely damaged 40 percent of the country's rapeseed crop -- leading investors to bet the country will boost buying of soybeans to make up the shortfall. "Whenever a (government) minister makes a statement, the market definitely listens. ... That brought a lot more speculative money into the market on the bean side," said Jason Ward, analyst with Northstar Commodity in Minneapolis. Soybeans for May delivery soared to an all-time high of $14.045 a bushel on the Chicago Board of Trade before easing back on profit-taking to settle at $13.7375 a bushel, still up 5.75 cents. Other agriculture commodities also rose. Wheat for May delivery gained 1 cent to settle at $10.42 a bushel on the CBOT, while March corn gained 3.75 cents to settle at $5.1475 a bushel. Soybeans had a phenomenal run last year and are poised for another strong performance in 2008. U.S. exporters have already sold more than three-quarters of the soybeans the Agriculture Department predicts for the whole marketing year, which ends in June. Although current supplies appear ample, analysts say the market is headed into a downward trend and that farmers need to plant more soybeans than they did last year -- when an ethanol boom led farmers to favor planting corn acres over soybeans. "We're selling (soybeans) obviously at a quick pace that needs to slow down" in order to meet long-term demand, Ward said. In precious metals, gold and silver futures fell after the dollar strengthened against some major currencies. Gold for April delivery lost $4.70 to settle at $906.10 an ounce on the New York Mercantile Exchange. March silver lost 13.7 cents to settle at $17.118 an ounce, while March copper added 3.5 cents to settle at $3.523 a pound. Platinum, meanwhile, continued its record-setting rally amid supply concerns fed by a power shortage in South Africa that could slow mining operations for up to four years. Platinum for April delivery leaped $57.80 to settle at $2,063.70 an ounce on the Nymex. The metal later surged to an all-time high of $2,087 an ounce in aftermarket trading. In energy markets, crude oil futures closed essentially flat Friday as investors cashed in profits from recent gains and worried over data suggesting a drop in oil demand. Light, sweet crude for March delivery inched up 4 cents to settle at $95.50 on the Nymex. Oil prices have risen more than $8 in little more than a week. Other energy futures traded mixed Friday. March gasoline futures rose 1.77 cents to settle at $2.4938 a gallon on the Nymex, while March heating oil fell 1.97 cents to $2.6469 a gallon. Copyright 2007 Associated Press. All rights reserved. This material may

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