Bloomberg Corn, Soybeans, Wheat Surge as Improving Economy Boosts Demand

June 1 (Bloomberg) -- Corn, soybeans and wheat rose to the highest prices in at least seven months as signs of an improving economy in China renewed speculation that the worst of the global recession may be ending, boosting demand for commodities.

Investments in commodities have soared as the value of the dollar fell 11 percent since February against a basket of six major currencies. The Reuters/Jefferies CRB Index of 19 raw materials surged 14 percent in May, the biggest monthly rise since July 1974. The Federal Reserve and the administration of President Barack Obama have committed $12.8 trillion to snap the longest U.S. economic slump since the 1930s.

“Continued indications that world economies are bottoming is triggering the flow of money away from safe havens back to various markets,” said Dale Durchholz, a senior market analyst for AgriVisor LLC in Bloomington, Illinois. “The dollar is weakening with this shift. That in turn bolsters U.S. commodities, grain in particular, on ideas of good export demand.” more...

Bloomberg Soybeans, Corn Rise on Signs U.S. Exports Are Eroding Supplies

May 14 (Bloomberg) -- Soybean prices rose to seven-month highs, and corn resumed its rally on signs that increased global demand is eroding inventories in the U.S., the world’s biggest grower and exporter of both crops.

Soybean-export sales in the four weeks ended May 7 were more than double the year-earlier period, the U.S. Department of Agriculture said today. Sales of soybean meal, an animal feed, jumped 92 percent from a week earlier. The USDA also reported 120,000 metric tons of new soybean sales to China. Corn sales last week jumped 59 percent, the agency said.

“The export sales were better than expected last week, and China added to their purchases overnight,” said Roy Huckabay, an executive vice president at the Linn Group in Chicago. “Overseas traders are much more concerned about declining U.S. supplies than U.S. traders.”

Soybean futures for July delivery gained 19.5 cents, or 1.7 percent, to $11.475 a bushel on the Chicago Board of Trade, the biggest gain since May 1. The price earlier touched $11.48, the highest since Sept. 29.

Corn futures for July delivery rose 1.75 cents, or 0.4 percent, to $4.2825 a bushel in Chicago, the fifth gain in six sessions. Yesterday, the price reached $4.34, the highest for a most-active contract since Oct. 9.

Planting delays

Prices also rose as rain delays planting in the Midwest, Huckabay said.

Some fields from Kansas to Ohio may get more than 4 inches (10 centimeters) of rain in the next five days after getting more than 2.5 inches in the past 24 hours, said Mike Tannura, a meteorologist for T-Storm Weather in Chicago. Some fields will receive a month’s worth of rain in the next five days, he said.

Corn planting in the top 18 growing states, which seeded 92 percent of last year’s crop, rose to around 48 percent complete this week, up from 33 percent a week earlier, USDA said May 11. The average was 71 percent at this time from 2004 to 2008. more...

Bloomberg Soybeans, Corn Rise as China’s Stimulus Plan to Boost Demand

March 4 (Bloomberg) -- Soybeans rose the most in more than three weeks and corn gained on speculation that demand for food and livestock feed will improve as China boosts government spending in a bid to spur economic growth.

Premier Wen Jiabao will announce a new stimulus package tomorrow, said Li Deshui, a former central bank policy maker. China’s manufacturing index rose for a third month in February, adding to evidence that spending is reviving growth. The country is the world’s biggest consumer of grain and oilseeds.

“China’s economy looks like it is moving back into an expansion mode,” said Roy Huckabay, an executive vice president for the Linn Group in Chicago. “A controlled economy like China can turn around much faster than a free-market economy.”

Sovereign-Fund Buying

China Investment Corp., the $200 billion sovereign wealth fund, may invest in “undervalued” commodity assets, joining other Chinese companies in taking advantage of a six-year low in prices, Executive Vice President Jesse Wang told reporters today in Beijing.

The Baltic Dry Index, a measure of shipping costs for commodities, posted a fourth consecutive advance on the Baltic Exchange, suggesting improved commodity demand, analysts said. The index, after dropping 92 percent last year, has more than doubled since Dec. 24.

“The jump in the shipping index is a sign that China is again restocking natural resources,” Linn’s Huckabay said. “This could be a signal for other countries to start buying, and that means U.S. grain exports may be better than people expect.” more...