News and analysis on the global poultry
and animal feed industries.
on December 28, 2011

US corn, soy post gains on increased demand

Reduced output in South America raising call for US supplies

U.S. corn continued its longest rally in a year and soybeans jumped the most in 11 weeks on speculation that adverse weather may reduce output in South America, increasing demand for U.S. supplies.

Roughly 50% of Argentina crops will be dry through the first week of January 2012 after recent rain stayed north of the main growing regions, said Commodity Weather Group LLC in a report, and as much as a third of Brazil’s crops face a lack of rain. “Current weather trends are raising the odds that the South American crops will be reduced,” said Dave Marshall, a farm- marketing adviser at Toay Commodity Futures Group LLC in Nashville, Illinois.

Corn futures for March delivery rose 2.2% on December 27 to close at $6.3325 a bushel at 1:15 p.m. on the Chicago Board of Trade, the seventh straight gain and the longest rally since Dec. 29, 2010. Soybean futures for March delivery rose 3.2% to $12.095 a bushel, the biggest advance since October 11. It was the eighth straight gain, the longest rally since mid-July.

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