Corn Advances as Recent Slump Attracts Investors, Importers

Corn futures rose after yesterday’s slump to the lowest in more than two weeks may have attracted importers and investors.

July delivery corn rose as much as 0.9 percent to $3.5925 a bushel on the Chicago Board of Trade, and was at $3.5725 a bushel at 9:18 a.m. Singapore time. The contract yesterday fell as much as 2.1 percent to $3.555 a bushel, the lowest price since April 28.

Corn futures lost 5.9 percent in the three trading sessions through yesterday on concern Europe’s debt crisis may slow global economic recovery, hurting demand for food, animal feed and fuel, including ethanol.

The recent slump in prices “has attracted long term buyers,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney said by phone today. “It’s a technical bounce.”

Corn for export inspected at U.S. ports rose to 38.5 million bushels in the week ended May 13, up 0.6 percent from a week earlier and 23 percent above the same week a year earlier, the U.S. Department of Agriculture said in a report yesterday.

Inspectors examined 8.47 million bushels of soybeans for export, up 29 percent from 6.592 million a week earlier, the USDA said.

Soybeans for July delivery rose as much as 0.5 percent to $9.46 a bushel after declining to a six-week low yesterday. The contract climbed 0.2 percent to $9.425 a bushel at 9:20 a.m. Singapore time.

Wheat for July delivery added as much as 0.3 percent to $4.705 a bushel, after yesterday losing as much as 1.1 percent to the lowest price since April 6.

Luzi Ann Javier
Source: Bloomberg