Corn rebounded on expectations a drop to the lowest price in 32 months may spur demand and as supplies in the U.S., the biggest producer, declined before the next harvest. Wheat snapped its longest slump since 2005.
Corn for December delivery gained as much as 0.5 percent to $5.0375 a bushel on the Chicago Board of Trade and was at $5.0325 by 2:14 p.m. in Singapore. Earlier, prices fell 0.2 percent to $5.0025, the lowest for a most-active contract since Oct. 8, 2010, after a government report yesterday showed that U.S. crop conditions improved. The contract for delivery in July, before the harvest, gained as much as 0.9 percent to $6.6125.
Prices slumped 28 percent this year, the second-worst performer in the Standard & Poor’s GSCI gauge of 24 commodities, as farmers in the U.S. planted the most acres since 1936 in response to low stockpiles, the U.S. Department of Agriculture said June 28. Inventories on June 1 fell to 2.76 billion bushels, the lowest since 1997, after the worst drought in more than 70 years cut production, according to the USDA.
“Some of the market may see a little value here coming off the bottom,” Graydon Chong, a grains and oilseed analyst at Rabobank International, said by phone from Sydney. “Whilst we are expecting larger crops this season, the market is still a little bit jittery ahead of the new supply coming online.”
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