Corn gained after last week’s decline to a seven-month low boosted the appeal of the U.S. grain to importers and investors. Wheat increased.
July-delivery corn rose as much as 0.9 percent to $5.86 a bushel on the Chicago Board of Trade, rebounding from the May 11 low of $5.7225, which equaled the intraday low for the most- active contract on Oct. 3. It traded at $5.8125 at 3:01 p.m. Singapore time, snapping three days of losses. Futures fell 6.3 percent last week, the most since the five days ended Jan. 13.
Exporters in the U.S., the world’s largest grower, sold 300,000 metric tons of corn to unknown destinations, including 60,000 tons for delivery by Aug. 31, and the rest for shipment in the following 12 months, the Department of Agriculture said May 11. Futures tumbled last week after the agency said May 10 that U.S. reserves may total 851 million bushels before this year’s harvest, 12 percent more than analysts had expected.
“The fall in corn was dramatic,” Michael Creed, an agribusiness economist at National Australia Bank Ltd., said by phone from Melbourne today. “That pace of decline tends to stoke demand.”
Wheat for delivery in July gained as much as 0.7 percent to $6.01 a bushel, after posting a second weekly loss in the five days ended May 11. It last traded at $5.99 a bushel.
Soybeans for July delivery lost as much as 1.5 percent to $13.8525 a bushel, the lowest price for the most-active contract since March 30. It traded at $13.8525 after declining 4.9 percent last week, the biggest weekly loss for the most-active contract since the five days ended Nov. 25.
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