Corn may advance in Chicago amid speculation lower output in Mexico, the world’s second-largest importer of the grain, will lift imports by the country and add to tightening supplies. Soybeans gained. Mexico’s corn crop may fall to 20.5 million metric tons in the year through September on adverse weather, 3.5 million tons below the U.S. Department of Agriculture official estimate and compared with 21.1 million a year earlier, the USDA’s attaches in Mexico City wrote in a report dated Oct. 26. World corn stocks are forecast to slide for a third year as rising consumption outpaces production, according to the USDA. Mexico’s smaller harvest means the outlook for the country’s imports was raised by 600,000 tons from the USDA’s official estimate to 9.8 million tons, the attaches wrote. “Tightness in the corn market in particular is being nudged back up to the top end of the market’s agenda,” Jaime Nolan Miralles, a commodity-risk manager at FC Stone Commodity Services (Europe) Ltd., wrote in an e-mailed report today. “Of course a knock-on effect should be expected for Mexican imports.” Corn for delivery in December was little changed at $6.535 a bushel at 12:07 p.m. Paris time after rising as much as 0.7 percent to $6.5875 a bushel on the Chicago Board of Trade. The contract touched $6.6025 a bushel yesterday, the highest price in six sessions. Paris Corn January-delivery corn traded on NYSE Liffe in Paris was unchanged at 188.50 euros ($259.64) a ton. The corn harvest in the U.S., the largest grower and exporter, will be 12.457 billion bushels this season, INTL FCStone Inc., a commodity research and brokerage company, said in a report yesterday, cutting its forecast from 12.553 billion bushels last month. That compares with the USDA estimate of 12.433 billion bushels. “They lowered their estimate, so that would suggest it would be bullish for prices,” Victor Thianpiriya, an agricultural commodity analyst at Australia & New Zealand Banking Group Ltd., said by phone from Melbourne today Soybeans gained for the first time in four days on speculation a 17 percent decline from this year’s high may lure importers amid predictions of a shortage from the U.S. Department of Agriculture. January-delivery soybeans advanced as much as 1.3 percent to $12.185 a bushel in Chicago before trading at $12.1375. The most active contract ended at $12.025 yesterday, down from a three-year high of $14.575 in August. Soybeans “seem to have found support around $12,” Thianpiriya said. Prices rebounded within days when futures fell below $12 in October, signaling bargain-hunting, he said. ‘Good Value’ Prices ranging from $9.50 to $12 “represent good value for soybean consumers, as this reflects marginal cost in the industry,” Standard Chartered Plc said in an Oct. 31 report, predicting that futures may surge to $13.50 a bushel. The harvest in the U.S., the world’s largest grower and exporter, will be 3.109 billion bushels, FCStone forecast, lowering its prediction from 3.157 billion bushels last month. The latest estimate compares with the USDA’s forecast of 3.06 billion bushels on Oct. 12. Global production will drop 2 percent to 258.6 million metric tons in 2011-2012, trailing demand of 261.75 million tons, according to the USDA. The agency will update its U.S. and global outlook on Nov. 9. Wheat for December-delivery added 0.3 percent to $6.32 a bushel in Chicago, while January-delivery milling wheat traded in Paris was 0.4 percent higher at 184.50 euros a ton. Egypt, the biggest wheat importer, bought 180,000 tons of Russian and Ukrainian wheat at a tender yesterday, said Nomani Nomani, vice chairman of the General Authority for Supply Commodities. “Demand has been shifting towards Black Sea suppliers for some time now,” Thianpiriya said. To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net. To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net Claudia Carpenter at ccarpenter2@bloomberg.net.

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