US corn and wheat futures advance on big slump speculation

Corn and wheat futures gained in Chicago on speculation that Tuesday's (April 20) slumps were exaggerated; while soy futures also climbed.

Corn for July delivery gained 0.9% to US$3.605 a bushel on the CBOT at 2:14 p.m. Paris time. Wheat for July delivery advanced 1.5% to US$4.8675 a bushel.

Corn fell 4.5% and wheat slid 4.6%, the most since January 12 for both grains. Prices dropped on concern that a US government lawsuit against Goldman Sachs Group Inc. for alleged fraud will curb investment demand for riskier assets, including commodities.

The US corn crop was 19% planted as of April 18, up from 3% a week earlier, the USDA said.

Meanwhile, milling wheat for delivery in May traded on NYSE Liffe in Paris rose 0.8% to EUR129 (US$173.87) a tonne, while the November contract climbed 0.4% to EUR135.50.

The wheat crop in China, the world's biggest producer, may be damaged by a freeze that has delayed planting in Heilongjiang by more than 10 days, the China National Grain and Oils Information Centre said. Low temperatures are also adverse to rapeseed growth, the centre said.

China, the world's second-biggest corn grower, sold 100% of the grain on offer at a state auction, the National Grain and Oil Trade Centre said. Traders bought all of the 179,800 tonnes of corn held in a temporary reserve. Prices ranged from RMB1,560 (US$228) to RMB1,760 per tonne, averaging RMB1,682.

US exporters sold 120,000 tonnes of corn to unknown buyers, 110,000 tonnes of the grain to South Korea, and 165,000 tonnes of soy to China, the USDA said. Soy for July delivery rose 0.8% to US$9.9425 a bushel after declining 0.9% earlier.