Corn, Soybeans May Rise; Hot, Dry Weather Threatens U.S. Crops

By Jeff Wilson

July 28 (Bloomberg) -- Corn may rise after four weekly drops and soybeans may gain on speculation yields for the biggest U.S. crops will suffer after June floods stunted root development, leaving plants vulnerable to heat stress.

Twenty of 36 traders, advisers and grain merchants surveyed on July 25 from Beijing to Chicago said they expect corn to rise, and 21 of 37 said to buy soybeans. Corn fell 5.1 percent to $5.965 a bushel last week in Chicago and has plunged 25 percent since reaching a record $7.9925 on June 27. Soybeans dropped 4.2 percent to $13.865 a bushel, down 15 percent since touching an all-time high of $16.3675 on July 3.

Most respondents surveyed July 18 expected the drop in corn and soybeans last week. Since 2004, the surveys have been correct 60 percent of the time on corn, 63 percent on soybeans.

Weekly results: Bullish on corn: 20 Bullish on soybeans: 21 Bearish on corn: 16 Bearish on soybeans: 16

To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net.