(Bloomberg) – Soybeans and wheat gained as recent price declines are expected to boost demand for U.S. supplies of the commodities. Corn climbed amid concern excessive rain will damage crops in Argentina.
Weekly U.S. inspections of soybeans for export may be“well above” the 16.3 million bushels needed to remain on track to meet the U.S. Department of Agriculture’s demand forecast, according to Darin Newsom, an analyst at DTN Inc. The USDA will report weekly inspections at 11 a.m. today inWashington.
“Export inspections are expected to be bullish for soybeans,” Newsom wrote in a report today. “Export demand could begin to improve for U.S. wheat supplies.”
Soybeans for delivery in March rose as much as 1.4 percent to $13.86 a bushel on the Chicago Board of Trade, and were at $13.76 by 3:04 p.m. Paris time. The oilseed has fallen 23 percent from a Sept. 4 peak, compared with the 20 percent threshold deemed a bear market by some investors, after surging amid the worst U.S. drought since 1956.
Argentina’s soybean harvest may be 54.6 million tons, compared with the USDA’s outlook of 55 million tons, according to a Bloomberg survey.
Wheat for delivery in March advanced 0.6 percent to $7.5175 a bushel. The grain has fallen 21 percent from its July 23 peak.
“From a competitive point of view, the U.S. wheats are now the least expensive in the world, and this should be confirmed in the coming weeks through the export numbers,” Paris-based farm adviser Agritel wrote.
Milling wheat for delivery in March traded in Paris added 0.1 percent to 243.75 euros ($317.92) a ton. The contract is now priced at $42.03 a ton above Chicago wheat, compared with $30.76 a month ago.
Crop Damage
Corn advanced from a six-month low in Chicago amid concern excessive rain will damage crops in Argentina, the world’s third-biggest shipper of the grain. Wheat rose on speculation a five-week slide will attract buyers.
Severe storms will be followed by hot weather, the Buenos Aires Cereals Exchange said Jan. 4. Argentine farmers may harvest 25.9 million metric tons of corn, less than the 27.5 million tons forecast by the U.S. Department of Agriculture, based on a Bloomberg survey.
“The weather is still getting some attention,” Victor Thianpiriya, an agricultural analyst at Australia & New Zealand Banking Group Ltd. (ANZ), said by phone from Singapore today. Still, bigger harvests in Brazil may compensate for crop losses in Argentina, he said.
Corn for delivery in March gained 0.5 percent to $6.835 a bushel in Chicago. The most-active contract erased a drop of as much as 0.3 percent to $6.78, the lowest level since July 3.
To contact the reporters on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net; Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net
To contact the editor responsible for this story: Jake Lloyd-Smith at jlloydsmith@bloomberg.net
