By Sungwoo Park
Jan. 14 (Bloomberg) -- Corn rebounded from the lowest price in a month on speculation hot, dry weather will hurt plants in Argentina, the second-largest exporter after the U.S.
Less than 1 inch (2.5 centimeters) of rain will fall across 80 percent of Argentina's key agricultural region in the next 16 days, intensifying drought conditions, Allen Motew, the director of meteorology at QT Information Systems Inc. in Chicago, said in a report. Temperatures will average as much as 5 degrees Fahrenheit above normal this week and rise next week, he said.
``The dry weather news is driving up grains'' along with rising crude oil and equities, said Han Sung Min, a manager at the international marketing division of Korea Exchange Bank Futures Co. in Seoul. ``Expectations that China will continue to buy soybeans is also propping up the grain market.''
Corn for March delivery advanced as much as 1.9 percent to $3.695 a bushel in electronic trade on the Chicago Board of Trade and was at $3.69 a bushel at 11:06 a.m. Seoul time after plunging to the lowest level since Dec. 12 yesterday.
The MSCI Asia Pacific Index gained for the first time in five days with energy producers rising on a rebound in oil. Crude oil rose 3.4 percent to $39.05 a barrel at 10:54 a.m. Seoul time, gaining for a second day, after Saudi Arabia said it will make deeper supply cuts than announced to bolster prices.
Soybeans for March delivery rose as much as 1.8 percent to $9.885 a bushel and last traded at $9.8675 a bushel. Wheat for March delivery climbed as much as 1.5 percent to $5.7925 a bushel and last traded at $5.79 a bushel.
U.S. exporters reported sales of 399,000 metric tons of soybeans to China, the Department of Agriculture said on Jan. 12.
Elsewhere in Asia, South Korea bought 55,000 tons of corn for feed production yesterday after purchasing 110,000 tons the previous day.
To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net.
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