(Bloomberg) – Corn rose the most in more than two weeks on speculation demand for U.S. supplies may increase after futures slumped to a four-month low yesterday.
Corn for delivery in July advanced as much as 2.8 percent to $6.1075 a bushel on the Chicago Board of Trade, the biggest intraday gain for the most-active contract since March 30, and traded at $6.0625 by 2:34 p.m. Paris time. Futures fell to $5.9175 yesterday, the lowest level since Dec. 19.
The Korea Corn Processing Industry Association issued a tender to buy as much as 55,000 metric tons of corn for food. Private buyers in China may seek permits to buy more corn after the price drop, according to Shanghai JC Intelligence Co.
“Corn has fallen a lot recently, and the $6 must look pretty attractive to physical buyers as well as some investors,” Park Jong Beom, a senior trader at Tong Yang Securities Inc., said today by phone from Seoul. “The import tenders by Korea today are the evidence and today’s price gain can be explained in that sense.”
The Korean industry group is seeking corn for delivery by Aug. 25, according to a notice to suppliers, a copy of which was e-mailed to Bloomberg News today.
“The falling corn price is capturing demand,” said Clement Gautier, an analyst at Noisy le Grand, France-based researcher Horizon Soft Commodities. “On the May contract we touched $6 which is very low, that justifies a rebound. You’ll see the importing countries come to the market.”
Private feed mills and other corn users may be seeking government permits for more imports, said Li Qiang, chairman of Shanghai JC Intelligence.
“There are talks that private companies are asking for import permits for another 1-2 million tons, but nothing is confirmed at this point,” Li said by phone from Shanghai.
Soybeans for July delivery climbed 1.1 percent to $14.2875 a bushel in Chicago, while wheat for delivery in the same month gained 1.5 percent to $6.25 a bushel.
Milling wheat for November delivery traded on NYSE Liffe in Paris added 0.9 percent to 202.25 euros ($264.56) a metric ton. The contract’s spread over December-delivery wheat in Chicago slipped to $21.28 a ton from $22.65 yesterday.
“We have a phenomenon of disconnect between Matif and CBOT,” Gautier said, referring to the Paris and Chicago markets. “Conditions remain rather good for the U.S., while on the European side production is affected by freezing.”
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