March 16, 2010

US soy futures rise on record use for animal feed; corn fall

Soy futures rose after an industry report showed increased demand last month from US makers of animal feed. Corn fell for an eighth session, heading for the longest slump since 2005.

Processors including Bunge Ltd. used 148.35 million bushels of soy during February, up 15% from a year earlier and the most ever for the month, the National Oilseed Processors Association said. Domestic consumption and exports from September to February were a record 2.089 billion bushels, according to Prudential Bache Commodities LLC.

Soy futures for May delivery gained 5.25 cents, or 0.6%, to US$9.3075 a bushel at 11:25 a.m. on the CBOT, after earlier touching US$9.2175, the lowest level since Feb. 9. Most-active futures fell 1.8% last week, the second straight weekly decline.

Corn prices slipped as the stronger dollar reduced the allure of commodities and the cost of imports from Argentina and Brazil, the two biggest exporters after the US.

Combined corn output in Argentina and Brazil will rise 9.1% this year, the USDA said last week. Inspections for export fell 3.5% 36.52 million bushels in the week ended March 11, the smallest total in four weeks, the USDA said.

Corn futures for May delivery fell 1.5 cents, or 0.4%, to US$3.6275 a bushel in Chicago. The most-active contract on March 11 touched US$3.615, the lowest price since February 9.

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.