Corn Rises Before USDA May Lower Estimate for World Inventories

Corn Rises Before USDA May Lower Estimate for World Inventories

Corn rose in Chicago on speculation
the U.S. Department of Agriculture may lower its estimate for
global stockpiles. Soybeans and wheat gained.
The USDA may cut its estimate for corn inventories this
year by 2.9 percent from a January forecast to 124.44 million
metric tons (4.9 billion bushels) as drought curbs production in
South America, according to the average estimate of 15 analysts
surveyed by Bg News. The latest supply outlook is due at
8:30 a.m. in Washington tomorrow.
“The trade seems quite intent upon seeing a report that
has a relatively large cut in the corn carryout,” economist
Dennis Gartman said in his daily Gartman Letter. “From what
we’ve conjectured, it appears that the cut has to be at least 50
million to 60 million bushels from the department’s report of a
month ago.”
Corn for March delivery climbed 0.7 percent to $6.47 a
bushel by 1:15 p.m. London time on the Chicago Board of Trade.
The grain rose for the first day this week.
Output in Argentina, the second-largest corn exporter after
the U.S., will probably reach 22.3 million tons, below the 26
million tons predicted by the USDA last month, the average
estimate of 22 analysts surveyed by Bg showed. In Brazil,
the fourth-biggest exporter, output will probably be 59.6
million tons, versus the USDA’s 61 million-ton forecast in
January, it showed.
Soybeans for March delivery increased 0.5 percent to
$12.3825 a bushel. The oilseed rose for a sixth session in
seven.
Wheat for March delivery added 0.6 percent to $6.66 a
bushel. The grain advanced for a second day in three. Milling
wheat for March delivery traded on NYSE Liffe in Paris fell 1.1
percent to 219 euros ($290) a ton.