Oct. 12 (Bloomberg) -- Corn increased, extending the largest advance since June 2010, on signs last month’s 23 percent slump may have attracted buyers seeking to build stockpiles.
Corn inspected for export rose 8.7 percent from a week earlier to 31.8 million bushels in the week ended Oct. 6, the U.S. Department of Agriculture said. The corn inspected included 4.7 million bushels bound for China, the second-largest user of the grain, the USDA said. The department will today release its latest supply-and-demand report on corn and other crops.
“The lower prices generated some buying interest,” William Adams, a portfolio manager at Resilience AG in Zurich, said today by e-mail. “Russia may enact its export tariffs again. Not a bad environment if you are a seller. The potential USDA revisions and government jaw-boning are making the market afraid to get caught short.”
Corn for December delivery rose 6 cents, or 0.9 percent, to $6.51 a bushel at 10:36 a.m. London time on the Chicago Board of Trade, after jumping 6.6 percent yesterday, the biggest closing gain for a most-active contract since June 30, 2010.
Mexico, the second-largest corn importer, bought 261,200 metric tons of corn from U.S. exporters, the department said.
“Export business is forecast to return with values at these levels,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a report today. That outlook “was vindicated by the big purchase” of U.S. corn by Mexico, he said.
Wheat for delivery in December gained 0.1 percent to $6.6125 a bushel in Chicago. It jumped 8.1 percent yesterday, the biggest closing gain for a most-active contract since Oct. 8, 2010.
Soybeans for delivery in November fell 0.2 percent to $12.33 a bushel, after closing 4.9 percent higher yesterday, also the biggest advance since Oct. 8, 2010.
About 51 percent of the soybeans planted in the U.S., the world’s largest grower and shipper, had been harvested as of Oct. 9, up from 19 percent a week earlier, the USDA said yesterday. About 56 percent of the U.S. crop was in good to excellent condition as of Oct. 9, compared with 54 percent a week earlier, it said.
--With assistance from Phoebe Sedgman in Melbourne, Jeff Wilson and Whitney McFerron in Chicago and Michael Sebany and Stephen Rose in Washington. Editors: John Deane, Nicholas Larkin
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