News
28.10.2009
Corn, Soybeans Climb as Dollar Rally Halts, Increasing Demand
Corn rallied, rebounding from the largest decline since June, and soybeans rose as a weakening dollar boosted the demand outlook for supplies from the U.S., the world’s biggest producer of the crops.
Corn gained as much as 0.7 percent as the Dollar Index declined for the first day in four against six major currencies, increasing demand for commodities as an alternative investment. The grain lost 5 percent yesterday in Chicago trading, the steepest drop since June 30.
“The bounce in the U.S. dollar has been responsible for a significant degree of the recent selling pressure across Chicago grains and oilseeds although harvest weather will remain another key consideration for both corn and beans,” Toby Hassall, a research analyst at CWA Global Markets Pty in Sydney, said today.
Corn for December delivery gained as much as 2.75 cents to $3.8075 a bushel in electronic trading on the Chicago Board of Trade and was at $3.7925 as of 2:31 p.m. Tokyo time. The grain touched $4.135 on Oct. 23, the highest price for a most-active contract since June 22.
Soybeans for January delivery added as much as 0.7 percent to $9.96 a bushel and last traded at $9.915. The most-active contract reached $10.2925 on Oct. 23, the highest price since Aug. 14.
About 20 percent of the corn crop was collected by Oct. 25, versus 17 percent by Oct. 18 and the 58 percent five-year average, the U.S. Department of Agriculture said yesterday in a report. The soybean harvest was 44 percent done, compared with 30 percent a week earlier and the 80 percent five-year average.
Harvest Delays
The U.S. harvest delays, especially for the soybean crop, may spur concern that crop yields will be lower than previously expected, said Hiroyuki Kikukawa, general manager of research at IDO Securities Co.
The Dollar Index fell as much as 0.3 percent to 75.854 after earlier gaining to 76.122, the highest level since Oct. 13. A drop in the dollar makes U.S. grain supplies cheaper for holders of other currencies.
China’s soybean imports may fall to 2 million metric tons to 2.2 million tons in October, with shipments only picking up again after November, the China National Grain & Oils Information Center said in an e-mailed statement today. China is the world’s biggest buyer of the oilseed.
South Korean feed-makers are seeking to buy as much as 135,000 tons of soybean meal today for arrival between March and May next year, according to local industry executives.
Wheat for December delivery fell as much as 1.1 percent to $5.21 a bushel in Chicago and last traded at $5.2725. The contract lost 3.8 percent yesterday, the biggest decline since Sept. 25.
Bloomberg
