News
08.02.2010
Soybeans, Corn Rise Ahead of U.S. Forecasts for Crop Reserves
Soybeans rose the most in almost a week on speculation that U.S. crop reserves may be lower than earlier estimates. Corn and wheat also advanced.
Soybeans for March delivery rose as much as 14 cents, or 1.5 percent, on the Chicago Board of Trade, the biggest intraday gain since Feb. 2. The most-active contract traded at $9.24 a bushel at 2:56 p.m. Seoul time. The price fell 0.1 percent last week, the fifth weekly loss.
The U.S. Department of Agriculture is expected to cut its projection for soybeans reserves before the 2010 harvests to 221 million bushels in a report on Feb. 9, from the 245 million estimated last month, a Bloomberg News survey showed.
“Many are expecting a drop in crop reserves in the U.S. report due tomorrow,” said Han Sung Min, a broker at Korea Exchange Bank Futures Co. in Seoul. “Investors are buying grains today ahead of the report.”
Corn for March delivery gained as much as 5.25 cents, or 1.5 percent, to $3.5675 a bushel, and traded at $3.555 at 2:56 p.m. Seoul time. The most-active contract declined 1.4 percent last week in its fourth weekly loss.
The Department of Agriculture may reduce its estimate of corn reserves to 1.75 billion bushels in the Feb. 9 report from a previous estimate of 1.76 billion, the Bloomberg survey showed.
Wheat for March delivery rose as much as 8 cents, or 1.7 percent, to $4.8125 a bushel and last traded at $4.805 a bushel. The price lost 0.2 percent last week, extending losses for a fourth week.
Crude Oil
Crude oil futures rebounded from a seven-week low on speculation demand will improve as the global economy recovers from its worst recession since World War II. Crude futures for March delivery rose as much as 1.3 percent to $72.14 a barrel and last traded at $71.62.
Demand for grain and oilseeds used in animal feed in Southeast Asia may climb 3 percent in 2010 from last year driven by expanding meat production in Vietnam and Indonesia, Adel Yusupov, regional director for Southeast Asia at the U.S. Grains Council, said in a phone interview today.
Processors may use 49.5 million metric tons of ingredients including corn, feed wheat, rice bran, soybean meal and copra meal in feed for animals including hogs and poultry, Yuspov said.
In the physical market, the Korea Feed Association, South Korea’s biggest grain-buying group, bought 55,000 metric tons of corn via private negotiations last week, according to two executives familiar with the trade. The group paid $219.75 a ton on a cost-and-freight basis for arrival by July 10, they said.
Corn is the biggest U.S. crop, valued at $47.4 billion in 2008, followed by soybeans at $27.4 billion, government data show.
Bloomberg
