Corn advanced for the second time this week on speculation that yesterday’s plunge, the biggest in a week, may spur importer demand. Wheat climbed.
Corn for July delivery gained as much as 0.7 percent to $6.1175 a bushel on the Chicago Board of Trade and was at $6.1125 at 2:26 p.m. Singapore time. July-delivery wheat rose as much as 1.3 percent to $6.075 a bushel and last traded at $6.07.
Corn prices slumped 2.5 percent yesterday, the biggest drop since May 2, after Global Weather Monitoring said beneficial conditions will boost planting and crop growth in parts of the U.S. Wheat dropped 2.4 percent, also the most since May 2, on speculation a U.S. Department of Agriculture report today will show domestic stockpiles have increased.
“When you get a large sell-off of the scale we have seen in recent weeks, you do get somewhat of a bounce-back,” Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today. “When you look at the fundamentals driving wheat, corn and soybeans, not an awful lot has changed in the last couple of days.”
Corn prices are down 5.4 percent this year as U.S. farmers told the government in March they intend to plant the most acres since 1937. The U.S. may harvest a record 14.395 billion bushels of corn, according to a Bloomberg News survey.
Wheat reserves at the end of the next marketing year on May 31, 2013, may total 827 million bushels, according to a Bloomberg News survey. That’s up from 793 million forecast by the USDA at the end of this month. Warm weather and timely rains have increased prospects for winter varieties that are set to be harvested later this month and in early June.
“Wheat fundamentals point to a bearish situation because you have fairly solid crop prospects for the season ahead,” Creed said. “Corn’s one where there’s a bit of a reason to be bearish just on the size of the projection of the U.S. crop.”
Soybeans for July delivery rose 0.8 percent to $14.4175 a bushel, snapping three days of declines. Futures rose 19 percent this year on concern drought may curb output in South America. On May 2, the most-active contract touched $15.125 a bushel, the highest since July 2008.
China’s soybean imports, the world’s biggest, were 4.88 million metric tons in April, up from 4.83 million tons in March and 26 percent more than a year ago, the Beijing-based customs office said in a statement today. Purchases may be about 6 million tons and 5.5 million tons in May and June, while averaging 4.6 million tons a month in July to September, state- owned researcher Grain.gov.cn said today.
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