September 3, 2010

CBOT corn, soy rise on higher demand for US exports

Corn and soy prices increased after adverse weather damaged crops in Russia, Europe and Canada, boosting demand for US supplies to make animal feed, food and fuel.

US exporters have sold 10.616 million tonnes of corn for delivery after September 1, up 36% from the same time a year earlier, the USDA said. Soy sales reached 15.315 million tonnes as of August 26, up 8.7% from a year earlier.

"Export demand continues to be very good," said Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis. The US is going to continue to pick up extra demand after world production was reduced in exporting nations, Schultz said.

Corn futures for December delivery on September 2 rose 0.75 cent, or 0.2%, to close at US$4.475 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched US$4.48, the highest level since June 2009. The contract erased earlier losses of as much as 0.8%.

The commodity rose 8% in August as Russia halted grain exports to protect domestic supplies.

Soy futures for November delivery rose 3.5 cents, or 0.3%, to US$10.09 a bushel in Chicago, rebounding from an earlier decline. Last month, the most-active futures rose 0.5% and reached a seven-month high of US$10.49 on August 5.