Corn Attempts Rally as USDA May Cut Inventory Estimate

December 6, 2013 02:52 AM
Corn Attempts Rally as USDA May Cut Inventory Estimate

Corn rose, heading for a weekly gain in Chicago, on speculation that a government report next week will show smaller supplies than previously estimated.

U.S. inventories of corn may be 1.86 billion bushels by the end of the 2013-14 season, 1.2 percent less than forecast a month ago, according to a Bloomberg survey of analysts before the U.S. Department of Agriculture updates its monthly estimate on Dec. 10. U.S. exporters sold about 3.8 million metric tons of corn in the past four weeks, more than twice the amount as in the same period last year, USDA data show. Corn tumbled 38 percent this year as the U.S. harvest climbed to a record.

"We look for a very slightly bullish report," economist Dennis Gartman, who is based in Suffolk, Virginia, said in his daily Gartman Letter. "Demand for corn, soybeans and wheat shall be cited as remaining very strong even as supplies continue to grow."

Corn for March delivery rose 0.6 percent to $4.36 a bushel at 4:35 a.m. on the Chicago Board of Trade, heading for a 2.7 percent gain this week, the biggest weekly increase since July. The USDA may peg global inventories at 164.17 million tons, below last month’s forecast of 164.33 million tons, Bloomberg’s survey showed.

Soybeans for delivery in January fell 0.4 percent to $13.2325 a bushel, set to drop 1 percent this week, the first weekly decline in three. Analysts expect the USDA to cut its forecast for U.S. inventories by 10 percent to 153 million bushels, while global stockpiles may be larger than estimated in November.

Wheat for March delivery rose 0.3 percent $6.5425 a bushel, after sliding 1.5 percent yesterday after the Canadian government raised its production estimate. Futures lost 2.2 percent this week. In Paris, milling wheat for March delivery fell 0.2 percent to 207.50 euros ($283.61) a ton on NYSE Liffe.

Global inventories before next year’s Northern Hemisphere harvest may reach 179.98 million tons, larger than the USDA prediction of 178.48 million tons in November, Bloomberg’s survey showed.




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