March 9, 2009
US corn, soy rise as weak dollar seen to lift demand
Corn and soy gained on speculation demand for US supplies will rise as a decline by the dollar boosts the purchasing power of overseas buyers.
China said it bought between 26 million and 27 million tonnes of corn and 3.5 million tonnes of soy for state reserves adding that the purchase was to lift prices.
The dollar fell against the euro and yen on concern that the US recession will worsen.
Samsung Futures Inc. deputy general manager at the global commodities team of in Seoul, Chris Yoo said the dollar turned weaker, pushing up grain prices in general.
Corn for May delivery rose 0.2 percent to US$3.59 a bushel in electronic trading on the CBOT, after falling 1.4 percent on Thursday (Mar 5). Futures have fallen 55 percent from a June 27 record of US$7.99.
Soy for May delivery gained 0.2 percent to US$8.535 a bushel after losing 1.9 percent on Thursday (Mar 5). The price is down 48 percent from a record US$16.36 on July 3.
The dollar dropped to US$1.26 per euro from US$1.25 on Thursday.
Wheat for May delivery advanced 0.4 percent to US$5.17 a bushel, after dropping 1.5 percent, while futures declined 62 percent from a record US$13.49 in February last year.
