Corn market comment

Nov 29-Nov 30 News brief

Bloomberg source:

CORN

Nov 29: corn rose for the first time in four sessions on speculation that reduced global grain production will boost demand for supplies from the US, the biggest exporter. Corn futures for March delivery rose 1.25 cents, or 0.2 percent t o$5.5425 a bushel at 11:08 am, on the Chicago Board of Trade. Before today, the price surged 48 percent since the end of June, reaching a 26-month high of $6.175 on Nov.9, as adverse weather reduced the size of the U.S. crop.

Nov 30, Bloomberg reports that corn declined in Chicago on speculation rainfall in South America will increase crops of the grain. As much as 3 inches of rain fell in parts of Brazil and Argentina, the biggest corn exporters behind the US, in the past three days and about 2.5 inches more may fall this week, commodity weather group LLC said in a report.

Corn for March delivery fell 2 cents or 0.4 percent to $5.5125 a bushel at 1:14pm London time on the CBOT.

Corn has gained 33 percent this year as dry weather in August curbed U.S. production. Prices have declined 5.3 percent this month after five gains in a row.

Argentina, the world’s second-biggest corn shipper, will authorize the export of 5 million tons from the crop now being planted, starting Feb.15, the national agricultural exports agency said Nov.24.

Corn futures are called to open 1 cent or 2 cents a bushel lower on the CBOT amid speculation that the European Union may have to bail out more members, damping the global economy and demand for raw materials, including grain.

Nov 30 Bloomberg, Corn-crop forecasts for the U.S. and China may be lowered again because “weather was not favorable,” says Generale SA said.