Corn, soybeans rise on bets China's economy to boost demand
Monday, 14 December 2009
CHICAGO, Dec 13 (Bloomberg): Corn and soybean prices rose on speculation that surging economic growth in China will boost demand for food and animal feed.
Industrial production in China jumped in November, exports fell the least in 13 months and imports surged. Gross domestic product in the nation, the world's largest importer of soybeans, will expand 9.3 per cent next year, according to a Bloomberg News survey of economists. The US is the biggest corn and oilseed shipper.
"People are anticipating increasing demand in China," said Roy Huckabay, the executive vice president at the Linn Group in Chicago. "They need more food with the economy set to surge over 9 per cent next year."
Corn futures for March delivery rose 11.5 cents, or 2.9 per cent, to $4.045 a bushel on the Chicago Board of Trade. This week, the price climbed 4.1 per cent. The grain is up 18 per cent this quarter as adverse weather threatens to reduce the size of the US crop.
Soybean futures for January delivery rose 8 cents, or 0.8 per cent, to $10.35 a bushel. The price fell 0.8 per cent this week. The oilseed is up 12 per cent in the quarter.
Corn is the biggest US crop, valued at a $47.4 billion in 2008, followed by soybeans at $27.4 billion, government figures show.
Industrial production in China jumped in November, exports fell the least in 13 months and imports surged. Gross domestic product in the nation, the world's largest importer of soybeans, will expand 9.3 per cent next year, according to a Bloomberg News survey of economists. The US is the biggest corn and oilseed shipper.
"People are anticipating increasing demand in China," said Roy Huckabay, the executive vice president at the Linn Group in Chicago. "They need more food with the economy set to surge over 9 per cent next year."
Corn futures for March delivery rose 11.5 cents, or 2.9 per cent, to $4.045 a bushel on the Chicago Board of Trade. This week, the price climbed 4.1 per cent. The grain is up 18 per cent this quarter as adverse weather threatens to reduce the size of the US crop.
Soybean futures for January delivery rose 8 cents, or 0.8 per cent, to $10.35 a bushel. The price fell 0.8 per cent this week. The oilseed is up 12 per cent in the quarter.
Corn is the biggest US crop, valued at a $47.4 billion in 2008, followed by soybeans at $27.4 billion, government figures show.