RAIN in the past three days has eased a drought threatening crops in Heilongjiang Province, which accounts for more than a third of China's soybean production, the province's weather office said.
"Most areas received more than 50 millimeters of rain," the Heilongjiang Meteorological Bureau said on its Website.
Still, the rain may be too late to prevent losses, said analysts, including Chen Baomin at Narada Futures Co, Bloomberg News reported. China, the world's biggest soybean buyer, may import a record 31.5 million metric tons of soybeans next year because of reduced planting and drought, the China National Grain and Oils Information Center said on August 8.
The imports have helped to boost Chicago soybean prices, which have risen 27 percent this year.
"Rain at this stage may stop further damage, but it won't turn the situation around," Chen said by phone from the northern city of Dalian. "Soybean pods are already at the very late maturing stage and rain won't improve yields now."
China's soybean production this year is forecast to fall 7.3 percent to 14.8 million tons, while Heilongjiang's output may drop 12 percent to 5.2 million tons, the state-affiliated Grain and Oils Information Center said.
"Between August 8 and August 11, 83 percent of Heilongjiang's drought-affected cropland was relieved by rain," the government-owned Heilongjiang Daily said on its Website yesterday.
Soybean futures for November delivery on the Chicago Board of Trade rose 1.5 percent to US$8.85 a bushel in after-hours electronic trading at 2:26pm Beijing time.
On the Dalian Commodity Exchange, soybean futures for May 2008 delivery, the most actively traded contract, rose 2.5 percent to 3,635 yuan (US$479) a ton at the close.