March 17, 2009

US soy gained on speculation that government measures to revive economies may bolster demand for food, animal feed and biofuels.

The Dow Jones Euro Stoxx 50 Index rose as much as 3.3 percent after a group of 20 finance ministers over the weekend vowed to combat the global recession.

Twenty-seven of 32 traders and grain advisers from Beijing to Chicago surveyed on March 13 predicted corn will rise this week and 21 forecast a gain in soybeans.

Research analyst at Commodity Warrants Australia Ltd. in Sydney Toby Hassall said global demand situation continues to be a major influence on grains markets.

Soy for May delivery rose 0.9 percent to US$8.84 a bushel in CBOT, while futures for oilseed, which gained 1.1 percent last week, are still down 46 percent from a record US$16.36 on July 3.

Corn for May delivery rose 0.4 percent to US$3.90 a bushel. The grain rose 7.5 percent last week, gaining for the third straight week, while futures are down 50 percent from a record US$7.99 on June 27.

US farmers will cut their corn plantings 5.3 percent to 81.419 million acres this year, while soy plantings will increase 7.6 percent to a record 81.502 million acres, Memphis, Tennessee-based Informa Economics said March 13 in a report to clients.

Hassall said that in the US, the increased soy acreage is partly at the expense of corn acres although the battle for acres is not finished until the seeds are sown.