Corn futures advanced to the highest price in more than two years on speculation that the U.S. Department of Agriculture will lower its estimate of the nation’s harvest.
Corn for December delivery gained as much as 1.5 percent to $5.9075 a bushel, the highest price for the most-active contract on the Chicago Board of Trade since Aug. 29, 2008. It traded at $5.8725, up 0.9 percent at 11:47 a.m. London time.
Sixteen of 27 traders and analysts surveyed from Chicago to Tokyo on Oct. 29 said corn will climb this week, and 15 respondents said soybeans will advance. The USDA will issue its crop projections on Nov. 9.
“There’s uncertainty around the U.S. harvest,” Michael Pitts, commodity sales director at the National Australia Bank Ltd., said by phone from Sydney today.
The Dollar Index fell for a third day on speculation that the Federal Reserve will take more credit-easing measures amid signs of a weakening recovery in the world’s largest economy. A declining dollar makes supplies from the U.S. cheaper for holders of other currencies.
Soybeans for January delivery added as much as 0.8 percent to $12.4625 a bushel in Chicago, before trading at $12.405 a bushel in Chicago. Wheat for December delivery increased by as much as 1.5 percent to $7.28 a bushel before trading at $7.225. Milling wheat futures on NYSE Liffe gained 0.2 percent to 225.5 euros ($314.66) a metric ton.
Rains are needed in some U.S. wheat-growing areas to support crop development, Telvent DTN Inc. said in a report dated Oct. 29.
“We’re looking at the forecast in the U.S. and what that means for the crop,” Pitts said. Dry weather may cause “a more adverse growing situation.” he said.
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