According to the news outlet, China, the world's number one buyer of the commodity, is on course to import 25 percent more in the first half of 2012 than in the first six months of 2011.
"That's a pretty supportive number. In the short term, a lot is going to depend on imports, especially by China," Barclays Capital analyst Sudakshina Unnikrishnan told Reuters. "The fact you're having record high prices domestically and the government is stockpiling does seem to suggest that in terms of pricing arbitrage, this is a pretty positive time for Chinese buyers to be making purchases on the international market."
Soybeans were up 0.06 percent on the Chicago Board of Trade at the opening of the markets on Wednesday, as the price reached $13.45 a bushel.
Bloomberg News reports that soybeans may rise further on speculation that next week's U.S. Department of Agriculture planting report will show that farmers did not increase the planting of oilseeds.
Learn Futures Technical Analysis with The Market's Spine
Give Your Trading the Backbone it Needs to Succeed, The Market’s Spine is a 34-page futures technical analysis guide that details how to read the backbone of recent market activity, explains a handful of indicators that are well known to institutional and fund traders, and more. Expand your futures technical analysis knowledge here.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.