August 18, 2010

US corn and soy futures gain as Asian buyers boost purchases

Corn and soy futures gained for the third time in four sessions as importers in Asia step up purchases from the US, the world's largest grower and exporter.

US shippers sold 121,920 tonnes of corn to Japan and 110,000 tonnes of soy to unknown destinations, all for delivery in the marketing year that starts on September 1, the USDA said. Earlier, USDA reported that China purchased 220,000 tonnes of soy, after buying 799,000 tonnes last week.

According to analysts, China could become a regular buyer of corn, noting that the country might be consuming more than they are producing.

Corn futures for December delivery rose 7.25 cents, or 1.7%, to close at US$4.30 a bushel at 1:15 p.m. on the CBOT. Prices have climbed 5.7% this month, partly due to increased demand for US grain.

Soy futures for November delivery advanced 10.5 cents, or 1%, to US$10.42 a bushel in Chicago. The most-active contract gained 1% last week as China bought more from the US.

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.