Corn rebounded from a one-week low on speculation that the U.S. government may lower its estimates on global supply and as port bottlenecks delayed deliveries from Brazil, set to be the world’s largest shipper this year.
The contract for May delivery rose as much as 0.4 percent to $6.91 a bushel on the Chicago Board of Trade after losing 2.9 percent yesterday to settle at the lowest level since Feb. 25. Futures were $6.905 a bushel at 11:11 a.m. Singapore time, trading at a premium to wheat for a fourth straight day. Wheat, which added 0.3 percent to $6.855 a bushel, had an average premium to corn of $1.40 in the past decade.
World inventories of corn before the 2013-2014 harvest will probably total 117.5 million tons, smaller than the U.S. Department of Agriculture forecast of 118 million tons last month, according to the average estimate of 18 analysts surveyed by Bloomberg News. The USDA is set to release its latest outlook tomorrow in Washington.
“When you look at supply, it’s still very thin for corn,” Joyce Liu, an analyst at Phillip Futures Pte, said by phone from Singapore today. Supplies will remain limited because of the shipping delays at Brazilian ports, she said.
There were 20 ships, carrying about 1 million tons of grains, mostly corn, berthed, arrived or expected at major ports in Brazil as of yesterday, data from SA Commodities and Unimar Agenciamentos Maritimos showed. The cargoes are bound for countries including South Korea, Taiwan, Vietnam and Malaysia, data compiled by Bloomberg show.
Export sales of U.S. soybeans probably ranged between 400,000 tons and 750,000 tons, down from about 1 million in the same period last year, according to a separate Bloomberg survey.
Soybeans for delivery in May was little changed at $14.6625 a bushel. Trading volume was 55 percent below the 100-day average for that time of day.
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