Corn advanced, extending a rebound from a nine-month low, as some investors reversed bets on losses and wet weather in the U.S. raised the risk of planting delays in the world’s largest grower.
The contract for May delivery rose 0.6 percent to $6.375 a bushel on the Chicago Board of Trade at 10:27 a.m. in Singapore on volume that was 17 percent below the average for that time of day. Futures dropped to $6.265 on April 5, the cheapest since June. Corn’s 14-day relative strength index has stayed below 30 since April 1, a technical signal to some analysts that an asset’s price has fallen too fast and is poised to increase.
Thunderstorms and moderate-to-heavy rain are expected across the Midwest through tomorrow, while northwest to southeast parts of the U.S. may have cool weather later this week, Accuweather.com said in a forecast yesterday.
“People are just doing a bit of short-covering after last week’s plunge,” Joyce Liu, an analyst at Phillip Futures Pte., said by phone from Singapore, referring to ending bets on declines. Corn dropped 9.5 percent last week. “The weather in the U.S. has been very wet. It will delay corn planting.”
Soybeans for May delivery gained 0.5 percent to $13.8425 a bushel in Chicago, while wheat for delivery in the same month lost 0.6 percent to $7.0825 a bushel. Wheat advanced 1.9 percent yesterday after China bought as many as 16 U.S. cargoes, according to state-owned Grain.gov.cn.
About 36 percent of the U.S. winter-wheat crop was rated good or excellent as of April 7, compared with 34 percent a week earlier, the U.S. Department of Agriculture said yesterday. The U.S. is the world’s biggest exporter.
“The weather in the U.S. has been favorable for wheat and we’ve seen some slight improvement in winter-wheat crop conditions,” Liu said. “That’s easing concerns about supply coming from the U.S.”
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