Corn, Soy May Rise as Dryness Threatens South American Crops
By Jeff Wilson
Corn may rise for a sixth straight week and soybeans may gain on speculation that hot, dry weather will damage crops in Brazil and Argentina, the two biggest exporters after the U.S.
Seventeen of 24 traders and analysts surveyed in the U.S. on Dec. 23 said corn will rise, and 19 of 25 respondents said soybeans will advance for the fifth time in six weeks. Last week, corn futures for March delivery climbed 2.9 percent to $6.14 a bushel on the Chicago Board of Trade. Soybean futures for March delivery rose 3.8 percent to $13.60 a bushel.
Last week’s gains in corn were expected by the majority of respondents surveyed on Dec. 17, while the soybean rally was a surprise. Since 2004, the surveys have been correct 53 percent of the time for corn and 54 percent for soybeans.