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April 29 (Bloomberg) — Corn gained for a second day, extending
yesterday’s steepest climb in nine weeks, after China bought
more than 100,000 metric tons of the grain from U.S. exporters.
Soybeans also gained.
China’s 115,000-ton purchase is to be delivered by Aug. 31, the
U.S. Department of Agriculture said yesterday. Production in
China, the biggest corn grower after the U.S., is expected to
drop 6.6 percent this year, the department said this month.
“The purchase turned the speculation that China will buy U.S.
corn into a conviction,” said Han Sung Min, a grains futures
broker at Korea Exchange Bank Futures Co. in Seoul. “China needs
to import more and has a long way to go to become a net
exporter. The news is driving up corn, coupled with cold and wet
weather in China.”
Corn futures for July delivery rose as much as 0.5 percent to
$3.6575 a bushel on the Chicago Board of Trade and traded at
$3.655 a bushel at 11:24 a.m. Seoul time. The most-active
contract jumped 2.9 percent yesterday, the biggest gain since
Feb. 22. Corn has lost 12 percent this year because of rising
stockpiles in the U.S., the world’s biggest grower and exporter.
Snow and cold weather in northeast China will delay planting of
spring crops by more than 10 days, the Ministry of Agriculture
said in an online briefing on April 27.
Soybean futures for July delivery were little changed at $9.9425
a bushel in Chicago. The price has declined 5.2 percent this
year, partly because of rising global output. Wheat for July
delivery advanced 0.3 percent to $4.895 a bushel.
In the physical market, Nonghyup Feed Inc., South Korea’s
biggest feed-grain buyer, passed on a tender late yesterday to
buy as much as 110,000 tons of U.S. corn for arrival in
September and October because of higher-than-expected prices.
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