Corn Rises After Falling to 1-Year Low, Soybeans Little Changed

By Jae Hur

Nov. 12 (Bloomberg) -- Corn gained after touching a one-year low and soybeans were little changed after declining the most in five days yesterday as a slowing global economy eroded demand prospects for U.S. crops used in livestock feed, fuel and food.

Corn fell to $3.6025 a bushel yesterday, the lowest since Oct. 25, 2007. Soybeans lost 3.4 percent on the Chicago Board of Trade, the biggest drop since Nov. 5. The MSCI Asia Pacific Index dropped as much as 2.2 percent after losing 3.6 percent yesterday when the dollar rose 1.8 percent against the euro, reducing the appeal of U.S. supplies.

``This is symptomatic of grains looking to external markets for direction and with the U.S. dollar trading a fairly tight range today,'' said Toby Hassall, an analyst at Commodity Warrants Australia Ltd. in Sydney. ``It's not surprising to see the grains a little directionless.''

Corn for December delivery was up 0.9 percent to $3.775 a bushel in after-hours electronic trading in Chicago by 3:09 p.m. Singapore time. Futures have fallen 53 percent from a record $7.9925 on June 27.

Production will total 12.02 billion bushels, down from 12.03 billion projected on Oct. 28, the third monthly reduction, the U.S. Department of Agriculture said Nov. 10. While unsold supplies of U.S. corn before next year's harvest will be 3.3 percent bigger than forecast last month, they will be 31 percent below last year, the USDA said.

January-delivery soybeans were up 0.2 percent to $9.18 a bushel at 3:06 p.m. Singapore time. Futures have lost 44 percent from a record $16.3675 on July 3.

Biofuel Demand

Crude oil fell as much as 1.3 percent, trading near a 20- month low, after losing 4.9 percent yesterday. It was at $59.06 a barrel by 3:18 p.m. Singapore time. Corn and soybeans are used for food as well as a source of alternative fuel.

``The two things to look for here is the U.S. dollar and crude,'' said Akhilesh Kamkolkar, head of futures at Halifax Investment Services in Sydney. ``There is limited support from weather also that's threatening more delays in harvesting.''

Wheat for December delivery was unchanged at $5.2325 a bushel as of 3:17 p.m. Singapore after trading between $5.19 and $5.2725. Futures are down 61 percent from a peak $13.495 on Feb. 27.

To contact the reporter for this story: Jae Hur in Singapore at jhur1@bloomberg.net