Corn rallied from a fifth weekly loss as investors assessed the outlook for a bumper crop in the U.S., the biggest producer, against signs that a price slump to the lowest in four years may spur demand.
Corn for December delivery rose as much as 1.3 percent to $3.7675 a bushel on the Chicago Board of Trade and was at $3.755 by 3:06 p.m. in Singapore. Prices dropped 1.8 percent last week. Soybeans for delivery in November surged as much as 1.5 percent to $10.9975 a bushel and traded at $10.9675, rallying from a 0.2 percent decline last week.
In the past year, corn has slumped 21 percent and soybeans has lost 10 percent on expectations that bumper crops in the U.S. will boost global supply. U.S. farmers may harvest the second-biggest corn crop ever and soybean production will be an all-time high, the U.S. Department of Agriculture predicts. U.S. exporters sold soybeans to China and corn to Mexico, the USDA said July 25.
“Grain markets have quickly priced in a larger-than- expected U.S. corn crop,” Australia & New Zealand Banking Group Ltd. analysts including Paul Deane wrote in a note. “Given the extent of the sell-off in the last month, we view grain prices as likely to stabilize near-term or at least until the release of the next USDA monthly supply and demand report on Aug. 12.”
Global corn stockpiles at the end of the 2014-2015 season may total 188.05 million metric tons, the highest since 2000, the USDA said July 11. World soybean reserves will climb to a record 85.31 million tons, the agency forecast.
Corn prices dropped to $3.6425 on July 24, the lowest for a most-active contract since July 2010. Soybeans fell to $10.55 on July 23, the lowest since October 2010.
Wheat for September delivery gained 0.3 percent to $5.395 a bushel today, after posting a second weekly advance.