February 7, 2011

CBOT corn and soy may go up, on speculation that a government report on February 9 will reveal that increasing demand battered worldwide inventories before the 2011 grain production.

If the speculation is true, this will be extending last week's rally to 30-month highs.

Twenty-three of 30 traders and analysts surveyed from Tokyo to Chicago on February 4 said corn will advance this week, and 24 respondents said soy will gain. Last week, corn futures for March delivery rose 5.4% to US$6.785 a bushel on the Chicago Board of Trade (CBOT). Soy for March delivery added 2.5% to US$14.335 a bushel.

Last week's gains in corn and soy were expected by the majority of respondents surveyed on January 28. Since 2004, the surveys have been correct 54 % of the time for corn, and 54 % for soy.