November 29, 2010

CBOT corn and soy may extend rally on dry weather

CBOT corn and soy may increase consecutively for two weeks as dry weather threatens crops in Brazil and Argentina, the world's biggest exporters behind the US.

Twenty-one out of 26 traders and analysts surveyed from Chicago to Tokyo on November 26 said that corn will rise, and 20 of 27 respondents said soy will gain. Last week, corn futures for March delivery on CBOT climbed 3.4% to US$5.53 a bushel, and soy futures for January delivery advanced 3.1% to US$12.385 a bushel.

Last week's gains in corn and soy were expected by the majority of respondents. Since 2004, the surveys have been correct 51% of the time for corn and 53% for soy.