By Luzi Ann Javier
July 9 (Bloomberg) -- Soybean and corn futures rose, set for the first gain in five sessions, and wheat futures gained, on speculation the U.S. may lower its estimate of global supply of the crops.
The U.S. Department of Agriculture is scheduled tomorrow to release its latest estimates on global supply and demand for crops including soybeans, wheat and corn. The new estimate may reflect the lower production forecast in Brazil, the world’s second-largest exporter of soybeans and corn, and Argentina.
“We’re likely to see the markets factoring in their projections of what the USDA might say,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia in Sydney, said by phone today.
Soybeans for November delivery, after the U.S. harvest, rallied as much as 1.8 percent to $9.0775 a bushel in after- hours electronic trading. The most-active contract was at $9.0525 a bushel at 10:19 a.m. Singapore time.
Corn for December delivery added 0.5 percent to $3.36 a bushel after earlier gaining as much as 1.4 percent to $3.3875.
Wheat for September delivery rose for a second day, gaining as much as 1.1 percent to $5.23 a bushel, before trading at $5.22 a bushel.
The USDA on June 10 lowered its 2010 global soybean inventory forecast to 51.02 million tons, from 51.88 million tons in May, on lower carry-over stocks from this year, because of increased purchases from China. It also lowered its forecast for corn inventories to 125.46 million tons, from 128.19 million tons a month earlier, as it reduced its production estimate.
The latest USDA estimate was released before Brazil cut its production forecasts for corn and soybeans, and the Buenos Aires Cereals Exchange said Argentina’s wheat output may drop in 2009- 2010 to 6 million tons, equal to the amount consumed by local millers, raising concern it may withdraw from world markets.
Brazil’s Agriculture Ministry crop-forecasting agency said July 7 it lowered its soybean forecast for the year to 57.13 million tons, from 57.14 million tons in June. It also reduced the corn output estimate to 49.45 million tons, from 49.88 million tons in June.
To contact the reporter on this story: Luzi Ann Javier in Singapore at javier@bloomberg.net
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