August 3, 2010

US soy and corn prices rise amid Russian drought

Soy and corn prices jumped to the highest level since January as drought slashed grain production in Russia and parts of Europe, boosting demand for supplies from the US, the world's biggest producer and exporter.

Russia declared emergencies in 27 crop-producing regions as drought harmed crops across at least 10.3 million hectares. Global equity markets rose following better-than-forecast earnings reports, and raw materials climbed, led by wheat and energy.

Soy futures for November delivery rose 12.25 cents, or 1.2%, to US$10.1725 a bushel at 10:20 a.m. on the CBOT. Earlier, the price reached US$10.295, the highest level for a most-active contract since Jan. 11. In July, the oilseed jumped 11%, the most since May 2009.

Corn futures for December delivery gained 6 cents, or 1.5%, to US$4.1275 a bushel. Earlier, the price reached US$4.18, the highest level since January 12. In July, the price advanced 8.9%, the most since February.

Corn is the biggest US crop, valued at US$48.6 billion in 2009, followed by soy at US$31.8 billion, government figures show.