Copyright 2012 Bloomberg.
By Luzi Ann Javier and Rudy Ruitenberg
Corn rose 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 climbed 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., 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 0.7 percent to $6.8475 a bushel on the Chicago Board of Trade at 11:59 a.m. Paris time. The most-active contract erased a drop of as much as 0.3 percent to $6.78, the lowest level since July 3.
Wheat for delivery in March advanced 0.5 percent to $7.51 a bushel. The grain has plunged 20 percent from its July 20 peak, the threshold deemed a bear market by some investors, after surging amid the worst U.S. drought since 1956.
"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 advisor Agritel wrote.
Milling wheat for delivery in March traded in Paris added 0.2 percent to 244 euros ($318) a ton. The contract is now priced $42.15 a ton above Chicago wheat, compared with $30.76 a month ago.
Soybeans for delivery in March advanced for the first time this month in Chicago, rising 0.5 percent to $13.74 a bushel. The oilseed has dropped 22 percent from a Sept. 4 peak.
Argentina’s soybean harvest may be 54.6 million tons, compared with the USDA’s outlook of 55 million tons, according to the Bloomberg survey.
--With assistance from Jeff Wilson in Chicago and Pablo Gonzalez in Buenos Aires. Editors: Dan Weeks, Sharon Lindores.