Feb. 8 (Bloomberg) -- Corn rose in Chicago on speculation the U.S. Department of Agriculture may lower its estimate for global stockpiles. Soybeans and wheat gained.
The USDA may cut its estimate for corn inventories this year by 2.9 percent from a January forecast to 124.44 million metric tons (4.9 billion bushels) as drought curbs production in South America, according to the average estimate of 15 analysts surveyed by Bloomberg News. The latest supply outlook is due at 8:30 a.m. in Washington tomorrow.
“The trade seems quite intent upon seeing a report that has a relatively large cut in the corn carryout,” economist Dennis Gartman said in his daily Gartman Letter. “From what we’ve conjectured, it appears that the cut has to be at least 50 million to 60 million bushels from the department’s report of a month ago.”
Corn for March delivery climbed 0.7 percent to $6.47 a bushel by 1:15 p.m. London time on the Chicago Board of Trade. The grain rose for the first day this week.
Output in Argentina, the second-largest corn exporter after the U.S., will probably reach 22.3 million tons, below the 26 million tons predicted by the USDA last month, the average estimate of 22 analysts surveyed by Bloomberg showed. In Brazil, the fourth-biggest exporter, output will probably be 59.6 million tons, versus the USDA’s 61 million-ton forecast in January, it showed.
Soybeans for March delivery increased 0.5 percent to $12.3825 a bushel. The oilseed rose for a sixth session in seven.
Wheat for March delivery added 0.6 percent to $6.66 a bushel. The grain advanced for a second day in three. Milling wheat for March delivery traded on NYSE Liffe in Paris fell 1.1 percent to 219 euros ($290) a ton.
--With assistance from Jeff Wilson in Chicago. Editors: Dan Weeks, Sharon Lindores.
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