Friday, 2 November 2012

Soybeans Rise on Improving Demand for U.S. Supplies; Corn Falls

By Jeff Wilson - Nov 2, 2012
Bloomberg
Soybeans rose for a third straight day on speculation that planting delays in South America will boost demand for supplies from the U.S., the world’s biggest exporter. Corn declined the most in a week.

Much of Argentina, the largest shipper of soy-based animal feed, has received about four times the normal rainfall during the past two months with another storm expected Nov. 7, QT Weather in Chicago said in a report. China, the top soybean consumer, may boost imports after manufacturing growth improved last month.

“The planting delays in Argentina are a growing concern and leading to consumers buying ahead in case the situation continues to deteriorate,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “The Chinese economy is showing signs of improvement and should increase soybean imports.”

Soybean futures for January delivery gained 0.7 percent to close at $15.60 a bushel at 2 p.m. on the Chicago Board of Trade. The oilseed fell 3.3 percent in October, after rains pared yield losses in the U.S. caused by the worst drought since 1956.

Corn futures for December delivery slid 0.6 percent to $7.51 a bushel on the CBOT, the biggest drop since Oct. 25. Prices have retreated 12 percent since touching a record $8.49 on Aug. 10 as demand slowed from meat and fuel producers.

Corn is the biggest U.S. crop, valued at $76.5 billion in 2011, followed by soybeans at $35.8 billion, government figures show.

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