Corn advanced for a third day on signs last week’s slump to the lowest price in three months lured buyers and on concerns rains may flood recently planted crops in central China, the world’s second-largest consumer of the grain.
Corn inspected for export at ports in the U.S., the world’s largest shipper, climbed 21 percent to 43 million bushels in the week ended June 16, the U.S. Department of Agriculture said. Severe flooding will persist in the Yangtze River valley, threatening corn, soybeans, and winter-wheat planted areas, Telvent DTN Inc. said in a June 20 forecast.
“Some people are buying on dips,” Tetsu Emori, a commodity fund manager at Astmax Co. Ltd., said by phone from Tokyo. “There could be much more buyers coming into the market on China,” he said, referring to concerns that flooding could push the Asian nation to boost imports.
Corn for December delivery gained 8.5 cents, or 1.3 percent, to $6.69 a bushel at 11:01 a.m. London time on the Chicago Board of Trade. A close at that price would be the biggest gain since June 9.
The Korea Corn Processing Industry Association issued a tender to buy 55,000 metric tons of corn for food production to arrive by Oct. 15, according to a tender notice to suppliers, a copy of which was e-mailed to Bloomberg News today.
Price Decline Bets
Investors are also closing bets on price declines on concern the tight supply situation for corn will support prices, Emori said. Global corn stockpiles in the 2011-2012 marketing year were estimated to fall to about 47 days of demand, the smallest since 1974, according to USDA data.
Soybeans for November delivery gained 11.5 cents, or 0.9 percent, to $13.47 a bushel in Chicago. Futures have surged 43 percent in the past year partly on demand from China.
Wheat for September delivery in Chicago climbed 5.75 cents, or 0.8 percent, to $7.015 a bushel, the first gain in six sessions. Milling wheat for November delivery was little changed at 211.50 euros ($302.91) a metric ton.
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