China’s corn production this year may increase 2.5 percent from 2009 to 168 million metric tons as farmers boost plantings, the China National Grain & Oils Information Center said.
Corn futures rose after yesterday’s slump to the lowest in more than two weeks may have attracted importers and investors.
The U.S. corn crop is expected to continue getting larger as farmers produce less wheat and soybeans, the U.S. Department of Agriculture said Tuesday.
Brazilian farmers harvested 99% of the upcoming 2009-10 soy crop as of May 7, local agricultural consultancy Celeres said in a weekly report.
U.S. wheat farmers are expected to produce a smaller crop this year, but they are also forecast to start out the 2010-11 marketing year with large beginning stocks and finish with even larger ending stocks, the U.S. Department of Agriculture said Tuesday.
Cash premiums for soybeans and corn shipped to export terminals near New Orleans widened relative to futures as U.S. farmers halted sales to wait for higher prices on optimism that demand will improve.
Corn futures rose, extending yesterday’s advance, after the U.S. government lowered its estimate of the nation’s inventory as demand expands faster than expected. Wheat also rose.
Cocoa rose for the first time in three days on speculation that output will trail demand after exports fell from Cameroon, the fifth-biggest producer of the beans. Coffee gained for a second session.
Corn and soybeans advanced for a third day and are heading for monthly gains on speculation the global economic recovery will bolster demand for food, animal feed and biofuels.
Wheat fell for the third time in four sessions after favorable weather boosted crop prospects in the U.S., the world’s largest shipper of the grain.