Corn, Soybeans rise on speculation Chinese demand will increase
Monday, 26 April 2010
BEIJING, April 25 (Bloomberg): Corn gained the most in almost two weeks and soybeans rose on speculation that China's surging economy will bolster demand for grain and oilseeds from the US, the world's biggest shipper.
US exporters sold 232,000 metric tons of soybeans to China for delivery after Sept. 1, the Department of Agriculture said today. The Asian country sold all of the corn offered in an auction held in major producing regions, indicating tightening domestic supplies, analysts said. China's economy in the first quarter expanded at the fastest pace in almost three years.
Corn futures for July delivery rose 8 cents, or 2.2 per cent, to $3.6525 a bushel on the Chicago Board of Trade, the biggest gain for a most-active contract since April 7. Yesterday, the price tumbled 4.5 per cent as US farmers accelerated planting last week at the fastest pace since 2004. Soybean futures for July delivery climbed 7.5 cents, or 0.8 per cent, to $9.94 a bushel on the CBOT. Yesterday, the price dropped 0.9 per cent, snapping a six-session rally.
China, the second-biggest consumer of corn and the largest buyer of soybeans, has been increasing purchases of dried distiller's grain, a byproduct of ethanol production from corn that is used in animal feed, Henderson said. Corn futures on China's Dalian Commodity Exchange have gained 16 per cent in the past year on speculation that a drought last year may have cut output by more than the government's official estimate.
US exporters sold 232,000 metric tons of soybeans to China for delivery after Sept. 1, the Department of Agriculture said today. The Asian country sold all of the corn offered in an auction held in major producing regions, indicating tightening domestic supplies, analysts said. China's economy in the first quarter expanded at the fastest pace in almost three years.
Corn futures for July delivery rose 8 cents, or 2.2 per cent, to $3.6525 a bushel on the Chicago Board of Trade, the biggest gain for a most-active contract since April 7. Yesterday, the price tumbled 4.5 per cent as US farmers accelerated planting last week at the fastest pace since 2004. Soybean futures for July delivery climbed 7.5 cents, or 0.8 per cent, to $9.94 a bushel on the CBOT. Yesterday, the price dropped 0.9 per cent, snapping a six-session rally.
China, the second-biggest consumer of corn and the largest buyer of soybeans, has been increasing purchases of dried distiller's grain, a byproduct of ethanol production from corn that is used in animal feed, Henderson said. Corn futures on China's Dalian Commodity Exchange have gained 16 per cent in the past year on speculation that a drought last year may have cut output by more than the government's official estimate.