Bloomberg News

Soybeans Rebound After Touching One-Month Low; Corn May Climb

June 20, 2011

June 20 (Bloomberg) -- Soybeans climbed after dipping to a one-month low and corn may gain as demand from producers of food, animal feed and alternative fuel rebounds after prices slumped.

November-delivery soybeans rose as much as 0.5 percent to $13.405 a bushel on the Chicago Board of Trade after touching $13.30 earlier, the lowest level for the most-active contract since May 17. The oilseed traded at $13.3825 by 2:08 p.m. Tokyo time. The price lost 3.5 percent last week, capping the first two-week decline since February.

“Recent drops in soybeans and corn have made the crops more attractive to buyers” such as South Korea, said Han Sung Min, a broker at Korea Exchange Bank Futures Co.

Buyers in South Korea, the world’s third-largest corn importer, bought a total 478,000 metric tons of the grain for arrival in September and 220,000 tons of feed wheat for arrival between September and October via tenders and private negotiations on June 17, according to two executives who took part in the bidding and have direct knowledge of the purchases.

Corn for December delivery was little changed at $6.5925 a bushel after trading between $6.55 and $6.64. On June 17, the grain touched $6.4775, the lowest price since March 17. The contract fell 7.4 percent last week for the fourth straight decline.

A stronger dollar after European governments failed to agree on a Greek rescue package may temporarily put a lid on an increase in grain prices, Han said. Corn is the most actively traded among the grains and oilseed complex in Chicago, he said. The dollar index rose as much as 0.5 percent to 75.378 against a basket of six major currencies.

‘Still Bullish’

“Fundamentally, corn is still bullish on strong demand amid dwindling stockpiles,” Han said. Any decline in U.S. corn yields after wet weather during the country’s crop-planting period may also provide support, he said.

Corn consumption will rise 3 percent in the next marketing year, a 16th consecutive annual gain that saw demand jump 66 percent, according to U.S. Department of Agriculture estimates. Inventory will drop to 47 days of use, the fewest since 1974, the USDA data show.

About 69 percent of U.S. corn was in good or excellent condition as of June 12, up from 67 percent a week earlier, the USDA said last week. A year earlier, an estimated 77 percent of the crop was rated in the two highest categories.

Wheat for September delivery declined 0.2 percent to $7.065 a bushel. On June 17, the grain touched $6.9625, the lowest level since March 17. The price declined 6.8 percent last week, the third consecutive loss.

Top commodity reports: {CTOP <GO>} Top agriculture stories: {YTOP <GO>} Crop calendars: {CCAL <GO>} Agriculture data, prices: {AGRS <GO>}

--With assistance from Whitney McFerron and Jeff Wilson in Chicago. Editors: Jarrett Banks, Thomas Kutty Abraham

To contact the reporter on this story: Jae Hur in Tokyo at

To contact the editor responsible for this story: James Poole at

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