(Businessweek) – Soybeans and corn rose for a second straight day on speculation that the U.S. government will lower its forecast for crops in South America.
Argentina, the world’s third-largest soybean exporter, may harvest 51.2 million metric tons of the oilseed, less than last month’s estimate of 53 million tons, according to a Bloomberg survey of 25 analysts before today’s U.S. Department of Agriculture report. Argentina, which has had dry weather, may harvest 25.7 million tons of corn, less than the 27 million tons projected in February. Brazil’s soybean and corn crops may both be 0.4 percent less than previously forecast, at 83.2 million tons and 72.2 million tons, the survey showed.
“Logistical delays and high moisture content in Brazilian soybeans continue to prevent product from reaching ports,”Christina McGlone-Hahn, an analyst at Deutsche Bank AG, said in an e-mailed report today. “Argentine soybean development has been quite variable.”
Soybeans for delivery in May rose 0.2 percent to $14.7625 a bushel at 4:40 a.m. on the Chicago Board of Trade, on trading volume that was 52 percent less than the average for the past 100 days for that time of day. Futures are set for a 2.2 percent gain this week. Corn for May delivery rose 0.5 percent to $6.9425 a bushel, paring this week’s drop to 2 percent.
Soybean exporters in the U.S., historically the world’s top grower, sold 1.38 million tons in the week to Feb. 28, the most since Jan. 31, the USDA said yesterday. World stockpiles before this year’s Northern Hemisphere harvests will probably be 59.3 million tons, smaller than the 59.5 million tons predicted by the USDA last month, a Bloomberg survey showed.
Wheat for May delivery fell 0.3 percent to $6.9375 a bushel, poised for a weekly loss of 3.7 percent. In Paris, milling wheat for the same delivery month rose 0.3 percent to 231.75 euros ($304.01) a ton on NYSE Liffe.
