Corn Prices Advanced as Import Demand may Increase, US Farmers choose Soybeans

Prices of corn advanced the most in more than two weeks on speculation that U.S. farmers may switch some acreage to soybeans, and as import demand may increase after futures dropped to a four-month low yesterday.

In July corn delivery advanced as much as 1.4 percent to $6.025 a bushel on the Chicago Board of Trade, the biggest intraday gain for the most active contract since April 3, and last traded at $6.02 at 11:08 a.m. Singapore time. Futures fell to $5.9175 yesterday, the lowest level since Dec. 19.

Soybeans for July delivery rose 0.7 percent to $14.23 a bushel. Wheat for delivery in the same month gained 1 percent to $6.2175 a bushel.

Corn Processing Industry Association Korea issued a tender to buy as much as 55,000 metric tons of corn for food production to arrive by Aug. 25, according to a notice to suppliers, a copy of which was e-mailed to Bloomberg News today. The group will hold the bidding at 5 p.m. Seoul time today, the notice showed.

Farmers told the government last month that they plan to cut soybean planting 1.4 percent to 73.9 million acres, the lowest level in five years. Soybean acres will rise 2 million to 2.5 million from what the government said in March as farmers plant more on winter-wheat fields, and some corn is switched to the oilseed, Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said yesterday. Farmers are expected to increase corn sowing by 4.3 percent to 95.864 million acres this year, the most since 1937, the USDA said on March 30.

Speculation that farmers may plant more soybeans over corn “could be a reason, but for now, it’s a bit too early,” Lynette Tan, an analyst with Phillip Futures Pte., said by phone from Singapore today. “This is more of bargain-hunting” after prices fell below $6 yesterday, she said.

Category: Corn, corn delivery july, corn market april, corn price, corn price 2012, corn speculations