May 24, 2010

US corn futures may rise on China demand; soy falls

Corn may rise on speculation that China, the world's biggest pork producer, will boost imports of US feed grain, while soy may fall as warm, dry weather aids US planting.

According to traders, corn will gain while soy will fall. Last week, corn futures for July delivery rose 1.7% to US$3.69 a bushel on the CBOT, the first gain this month. Soy for July delivery fell 1.3% to US$9.41 a bushel, the fourth straight drop.

Last week's soy decline was expected by the majority of respondents surveyed May 14. The corn rally was a surprise. Since 2004, the surveys have forecast weekly moves accurately 51% of the time for corn and 54% for soy.