Soybeans and corn advanced as crude oil futures gained, boosting the appeal of crops processed to make biofuels.
November-delivery soybeans gained as much as 0.8 percent to $9.0725 a bushel on the Chicago Board of Trade, and were at $9.0675 a bushel at 2:21 p.m. Manila time. Corn for December delivery rose as much as 0.5 percent to $3.8125 a bushel.
“A lot of the strength came from the positive developments in outside markets,” Toby Hassall, an analyst at CWA Global Markets Pty, said by phone from Sydney today. Gains in crude today and U.S. and European equities yesterday helped boost investor sentiment in the grain markets, Hassall said.
Crude oil for August delivery gained as much as 0.6 percent to $72.38 a barrel on the New York Mercantile Exchange on speculation supplies in the U.S. fell last week, boosting fuel- demand optimism. The Standard & Poor’s 500 Index yesterday climbed 0.5 percent, rising from a 10-month low.
Still, expectations of larger soybean and corn supplies may curb grain and oilseed futures in Chicago, Hassall said.
The U.S. Department of Agriculture may raise its estimate on the nation’s soybean stockpiles to 369 million bushels at the end of the 2010-2011 season from last month’s forecast of 360 million, Allendale Inc., a farm marketing adviser and broker, said in a report e-mailed today.
The U.S. corn inventory estimate may rise to 1.582 billion bushels at the end of the 2010-2011 season from 1.573 billion bushels last month, Allendale said. The USDA is scheduled to release its latest forecasts on global agricultural supply and demand on July 9 in Washington.
China, the second-largest corn consumer, may boost imports tenfold to 10 million metric tons by 2015 as economic growth raises demand, said Akio Shibata, chief representative for the research unit of Marubeni Corp., Japan’s biggest grain trader.
Wheat for September delivery was little changed at $5.0725 a bushel, after swinging between gains and losses.
With assistance from Aya Takada and Yasumasa Song in Tokyo and Ben Sharples in Melbourne. Editor: Jake Lloyd-Smith
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