BLBG: Corn Advances on Speculation USDA to Reduce Production Forecast in Report
Corn climbed on speculation that output in the U.S., the world’s biggest grower, may be lower than the government forecast last month. Rice was little changed after touching the highest level in more than five months.
December-delivery corn gained as much as 0.5 percent to $4.91 a bushel on the Chicago Board of Trade, and traded at $4.9075 at 1:59 p.m. in Tokyo. The grain has advanced 18 percent this year.
“The corn market was underpinned by speculation that the U.S. Department of Agriculture will reduce its output projection in its monthly report,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. Grain trading will slow as investors are reluctant to take new positions before the USDA report, he said. The report is due to be released tomorrow.
The USDA’s estimate for the country’s output may drop to 12.977 billion bushels, compared with a record 13.11 billion bushels harvested last year, according to a Bloomberg News survey. On Sept. 10, the department reduced its estimate to 13.16 billion from 13.365 billion in August.
The U.S. is the world’s biggest corn producer, followed by China and Brazil, according to USDA data.
Corn output in Brazil will drop as much as 11 percent next year because dry weather may harm crops, a weather forecaster said yesterday. Brazil may produce 50 million to 52 million tons, down from about 56 million this year, said Marco Antonio dos Santos, a meteorologist at Sao Paulo-based forecaster Somar.
Rough rice for November delivery climbed 0.2 percent to $12.725 per 100 pounds after rising as high as $12.78 yesterday, the highest price since April 27.
Soybean production may rise to 3.501 billion bushels this year from 3.483 billion forecast in September by the USDA and a record 3.359 billion harvested last year, according to the Bloomberg survey.
Soybeans for November delivery gained 0.4 percent to $10.655 a bushel after losing 0.9 percent yesterday. Wheat for December delivery advanced as much as 0.5 percent to $6.615 a bushel and last traded at $6.6075.
To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
