US corn futures rise on speculation China may increase imports

Corn futures climbed in Chicago on speculation that China, the world's second-largest consumer of the grain, may boost imports.

Corn for July delivery rose 0.2 % on the Chicago Board of Trade to US$3.76 a bushel on May 3 at 2:14 p.m. Paris time, gaining for fourth day.

The grain has climbed since an April 28 report from the USDA that China bought 115,000 tonnes of corn from US exporters, the biggest reported transaction since 2001.

"The US markets continue to find some support from the Chinese imports, notably in corn," French farm adviser Agritel said in an online comment.

Twenty-four of 34 traders and analysts surveyed from Chicago to Tokyo on April 30 said corn will rise this week, while 23 said soy will gain. Rains will disrupt planting in the corn- and soy-growing areas in the Midwest, while cold weather in northeast China will delay planting of spring crops and may cause damage to newly emerged crops, Telvent DTN Inc. said in an April 30 forecast.

"Corn is continuing to draw support from the demand profile emanating from China," Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, said. Grains are also supported by the weather forecast over the weekend, which may result in some replanting of corn and soy across parts of the US corn belt, he said.

Strong thunderstorms will affect growing areas in the US Midwest in the next few days, while rains may cause localised flooding, DTN forecast. The Midwest is the largest US corn- and soy-growing region.

Sales from stockpiles by China, the world's second-largest consumer of corn, and reduced production may drain the nation's supplies, potentially pushing imports to as much as 500,000 tonnes, Jay O'Neil, an agricultural economist at the International Grains Programme at Kansas State University, said April 29.