Thursday, June 10, 2010

Soybeans Rally as U.S. May Cut Stockpile Forecast; Corn Gains

June 9 (Bloomberg) -- Soybeans rose for the first time in four sessions on speculation that inventories will be tighter than expected in the U.S., the world’s largest grower and exporter. Corn also rallied.

The U.S. Department of Agriculture probably will cut its forecast of domestic stockpiles by more than 3 percent in a report tomorrow, according the average of estimates in a Bloomberg survey of 28 analysts. Corn growers in the U.S., the world’s largest producer, may be withholding supplies after prices dropped yesterday to an eight-month low.

“Soybeans are running tight,” said Jerod Leman, a broker at Wellington Commodities in Carmel, Indiana. “Even some smaller elevators are hanging on to supplies now. Given the crop conditions in corn and soybeans, farmers are holding a lot of grain right now.”

Soybean futures for July delivery rose 12.5 cents, or 1.3 percent, to $9.435 a bushel on the Chicago Board of Trade, the first gain since June 3. The price is down 12 percent in the past year, partly because of increased production in Argentina and Brazil, the largest exporters behind the U.S.

China, the world’s biggest consumer of cooking oils, purchased U.S. soybean oil, two traders with direct knowledge of the transaction, said today. China may have bought 100,000 metric tons of the oil, anticipating the U.S. will start certifying shipments to comply with Chinese regulations, said the traders, declining to be identified because the information isn’t public.

The U.S. government today confirmed sales of 40,000 tons of soybean oil to the Asian nation for delivery before Sept. 30

Corn futures for July delivery rose 1 cent, or 0.3 percent, to $3.3825 a bushel on the CBOT, the second straight gain. The price has slipped 18 percent this year, in part because of rising supplies.

Corn is the biggest U.S. crop, valued at $48.6 billion in 2009, followed by soybeans at $31.8 billion, government figures show.