January 31, 2011

CBOT corn, soy may rise on increased demand

US, the world's largest producer of corn and soy, may increase its price on both crops because of better demand for its supplies from the US.

Twelve of 22 traders and analysts surveyed from Tokyo to Chicago on January 28 said corn will advance this week, and 13 respondents said soy will gain. Last week, corn futures for March delivery fell 2% to US$6.44 a bushel on the Chicago Board of Trade. Soy for March delivery fell 1% to US$13.98 a bushel.

Last week's declines in corn and soy were unexpected by the majority of respondents surveyed on January 21. Since 2004, the surveys have been correct 54% of the time for corn, and 54% for soy.