Corn increased, extending the
largest advance in 16 months, on signs last month’s 23 percent
slump may have attracted buyers seeking to build stockpiles.
December delivery corn added as much as 1.2 percent to
$6.525 a bushel on the Chicago Board of Trade, after jumping 6.6
percent yesterday, the biggest closing gain for a most-active
contract since June 30, 2010. It traded at 6.495 a bushel at
2:43 p.m. Singapore time, narrowing the decline from this year’s
high of $7.93 on June 9 to 18 percent.
Mexico, the second-largest corn importer, bought 261,200
metric tons of corn from U.S. exporters, the U.S. Department of
Agriculture said yesterday. Separately, the USDA reported that
the grain inspected for export rose 8.7 percent to 31.8 million
bushels in the week ended Oct. 6 from a week earlier.
“Export business is forecast to return with values at
these levels,” Luke Mathews, a commodity strategist at
Commonwealth Bank of Australia, wrote in a report today. That
outlook “was vindicated by the big purchase of 261,000 tons of
U.S. corn by the Mexicans,” he said.
The corn inspected included 4.7 million bushels bound for
China, the second-largest user of the grain, the USDA said.
The agency will release today its latest World
Agricultural Supply and Demand Estimates report on corn and
other crops, which may show higher inventories than earlier
forecast, according to a Bloomberg News survey.
Global Inventories
World corn stockpiles will probably reach 120.5 million
tons at the end of this season, higher than last month’s 117.4
million-ton projected by the USDA, according to the average
estimate of analysts surveyed by Bloomberg. That will still be
the lowest level for reserves in five years, according to
Bloomberg data.
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