Dalian soybean futures up: Dalian soybean futures finished firmer on Wednesday, buoyed by a strong performance in trading on the Chicago Board of Trade (CBOT) overnight, traders said. Traders noted market talk that some undelivered soybeans and soyoil bought from the United States might be sold back to that market as prices there were looking favourable, traders said. he most active May 1999 contract ended at 2,225 yuan ($269) per tonne, up four yuan from Tuesday's settlement. It traded in a range of 2,208-2,227. CBOT soybean prices settled three to 5- cents per bushel higher with January up 4- at $5.82.

SFE wheat futures edge higher: Sydney wheat futures edged higher, helped by concerns over rain-damaged grain in the current 1998/99 harvest, dealers said on Wednesday. January 2000 wheat was the most actively traded, with 11lots changing hands. Grain dealers said concerns over the effects of persistent rains in the northeast grain belt offset some expectations of higher US wheat sales.

Chinese bid to improve corn export: As a major corn-exporting country, China needs to heed world market conditions to ensure it remains competitive, Bai Meiqing, chairman of the China Grain and Oil Group, said on Wednesday. Bai told a grains symposium that China must improve its competitiveness to sell more corn abroad. Chinese domestic corn prices are significantly higher than international prices and officials have often stated that they would not cut prices to boost exports. "We are paying attention to the problems," Bai said, referring to the price disparity. "We will adopt measures to ensure Chinese corn exports are competitive."

China to raise soybean imports: China would need to import more soybeans for crushing to meet its edible oil demand, said Bai Meiqing, chairman of China Grain and Oil Group, on Wednesday. "China needs soybeans with high oil content for crushing,"he told a grains symposium. China Grain and Oil Group is the one of the six state firms licenced to import edible oil in China. Bai said China's demand for edible oil had doubled between 1992 and 1997 to about 10 million tonnes a year, while production during that period rose to 7.46 million tonnes from 4.81 million. "China needs to import 2.0 to 3.0 million tonnes of oil a year," he said, noting that the largest increase was soy oil, followed by palm oil. Bai said while China had become a net soybean importer in the 1990s, there was still an export market for Chinese soybeans, whose high protein content made it particularly suitable for making tofu and other soy-based food products. The exports would aim mainly at Asian countries like Japan and Korea, he said.

Tokyo corn futures firmer: Tokyo corn futures ended firmer on Wednesday as a steady dollar/yen and a stable performance by CBOT corn futures overnight encouraged individual investors to buy on dips, traders said. They said investors would mostly remain attentive on the exchange rate in the following days in order to take profits. "Investors are looking out for profit-taking opportunities, as they believe CBOT futures hit the bottom in September," said an analyst at a commodities brokerage. Prices ranged from 40 to 100 yen per tonne higher. Benchmark November surged 100 to 13,950 yen, while nearby January gained 40 to 13,640 yen. Estimated volume was 26,042 lots. The dollar held steady against the yen in late Tokyo as the US Federal Reserve's rate cut on Tuesday gathered support for the greenback. The December contract on the CBOT Project A trade system was at $2.20 per bushel by 0735 GMT from $2.19 on the overnight Chicago close.

Gold, silver seen trading in ranges: Gold and silver prices seemed firmly entrenched in current ranges, traders said on Wednesday. Gold was stuck in the middle of its $288/$298 an ounce trading band, while silver was hovering just under $5.00, they added. The metal was unmoved after Tuesday's rate cut by the US Federal Reserve, which also failed to move the dollar, traders said. "Unless the yen weakens or we get some big move in the currency markets I don't see gold breaking out of its current trading range," a European trader said. "If it goes anywhere it is likely to be down," he added. Technical analysts said gold looked soggy and there was pressure on the technical indicators to cross down, which would lead to a fall in prices. On the upside they saw slight resistance at $296 then $298. On Tuesday investment bank JP Morgan said gold prices would end 1998 little changed from the start of the year at under $300. Traders in Europe and the United States also noted a lack of volatility in the futuresmarket.

Tocom palladium soars: Yen-based palladium futures surged on Wednesday, reacting to a bullish market outlook presented by a British platinum metals group refiner in its Tuesday report, traders said. Platinum futures also gained in tandem with palladium, while gold closed firmer reflecting dollar/yen rates, they said. Palladium futures ranged from 15 to 29 yen per gram higher. Benchmark October ended up 23 yen at 1,005 yen. British refiner Johnson Matthey said in its interim report published on Tuesday that global palladium demand will exceed mine supply by about 1.01 million ounces in 1998, led by healthy demand from the auto catalyst industry. "The estimated gap between demand and supply in the report was so large that short holders were forced to cover their positions, one brokerage analyst said.

BHP copper output rises: The Broken Hill Pty Co Ltd (BHP) said on Wednesday production of copper in concentrate rose 5.5 per cent in October to 51,100 tonnes from October 1997, while production for the first five months of its June-May year was up 24 per cent at 308,300 tonnes. The higher output in both October and the year to date was due mainly to the resumption of normal production at the Ok Tedi copper-gold mine in Papua New Guinea, BHP said. Production at Escondida in Chile was lower for the month because of lower headgrades and slightly lower recoveries and tie-in development work for the Phase 3.5 expansion. Shipments of copper in concentrate were higher for the month largely due to the resumption of shipping following higher Fly River levels in Papua New Guinea, it said.

Kenyan coffee steady at auction: Prices were steady at Kenya's coffee export auction on Tuesday, the Nairobi Coffee Exchange (NCE) and traders said on Wednesday. "Prices were about steady. Quality is still very low and we are just trying to clear up the late crop," a senior auction official told Reuters. "We do not expect a fresh crop on the market before the end of January. Between now and then we shall have about the same level or even a further decline in quality," a trader said. "That means that prices will remain down," he added. The Coffee Board of Kenya sold all 13,172 bags of coffee it offered for sale. Premium grades ABs and AAs (flat beans) sold at $119-$163and $136-$170 per 50-kg lot respectively. PBs, or peaberries -- which have one ovule developed instead of the usual two -- were sold at $123-$152 per 50-kg lot.