Soybeans Rise on Record Use for Feed, Cooking Oil; Corn Falls

Soybeans rose after an industry report showed increased demand from U.S. makers of animal feed and vegetable oil. Corn fell for an eighth session, the longest slump since 2005, on slowing demand for U.S. grain.

Processors including Bunge Ltd. used 148.4 million bushels of soybeans during February, up 15 percent from a year earlier and the most ever for the month, the National Oilseed Processors Association said today in a report. Domestic consumption and exports from September through February were a record 2.089 billion bushels, according to Prudential Bache Commodities LLC.

“Demand continues to be impressive,” said Anne Frick, a vice president for research at Prudential Bache in New York. “Tightening U.S. supplies is a positive factor.”

Soybean futures for May delivery gained 4.5 cents, or 0.5 percent, to $9.30 a bushel on the Chicago Board of Trade, after earlier touching $9.2175, the lowest level since Feb. 9. Most- active futures fell 1.8 percent last week, the second straight weekly decline.

Corn futures for May delivery fell 1 cent, or 0.3 percent, to $3.6325 a bushel in Chicago. The most-active contract on March 11 touched $3.615, the lowest price since Feb. 9. The last time the commodity declined for eight straight sessions was in September 2005.

Corn prices slipped today as the stronger dollar reduced the allure of commodities and the cost of imports from Argentina and Brazil, the two biggest exporters after the U.S.

Stronger Dollar

The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, advanced as much as 0.7 on speculation that sovereign credit ratings may deteriorate. Combined corn output in Argentina and Brazil will rise 9.1 percent this year, the U.S. Department of Agriculture said last week. Inspections of U.S. corn for export fell 3.5 percent to 36.5 million bushels in the week ended March 11, the smallest total in four weeks, the USDA said.

“The rally in the dollar is keeping pressure on the markets,” said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana. “Traders are worried about slowing U.S. exports.”

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.

By Jeff Wilson
Source: Bloomberg