Oct. 14 (Bloomberg) -- Corn, soybean and wheat futures rose on speculation that China will step up grain purchases to damp food inflation.
China bought U.S. corn, soybeans and wheat last week, data from the Department of Agriculture show. The agency yesterday reported that U.S. exporters sold an additional 900,000 tons of corn to the Asian nation. Food prices in China rose 13 percent last month from a year earlier, the government said today.
“China is buying and will continue to buy to push down domestic prices,” Roy Huckabay, an executive vice president at the Linn Group in Chicago, said in a telephone interview. “There’s no slowdown in global demand for food.”
Corn futures for December delivery rose 0.2 percent to $6.3925 a bushel at 10:45 a.m. on the Chicago Board of Trade. A close at that price would mark a gain of 6.5 percent, the most since mid-July.
Soybean futures for November delivery rose 0.4 percent to $12.615 a bushel on the CBOT. A close at that price would mark a weekly gain of 8.9 percent, the most since October 2009.
Wheat futures for December delivery advanced 0.1 percent to $6.185 a bushel in Chicago.
Corn is the biggest U.S. crop, valued at $66.7 billion in 2010, followed by soybeans at $38.9 billion, government figures show. Wheat is the fourth-largest at $13 billion, behind hay.
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