Corn, Soybeans May Fall as Rain Boosts South American Crops

By Jeff Wilson

Jan. 11 (Bloomberg) -- Corn and soybeans may fall on speculation that rain in South America will improve prospects for crops that most farmers will begin harvesting next month, slowing demand for supplies from the U.S., the biggest exporter.

Nineteen of 32 traders and analysts surveyed on Jan. 8 from Tokyo to Chicago said corn will drop, and 25 of 35 respondents said soybeans would fall. Last week, corn futures rose 2.1 percent to $4.23 a bushel on the Chicago Board of Trade, the highest weekly settlement since June. Soybeans slumped 2.5 percent to $10.22 a bushel, the fifth drop in six weeks.

The gains in corn last week were anticipated by the majority of respondents surveyed Dec. 31, while the drop in soybeans was a surprise. Since 2004, the surveys have forecast price moves accurately 53 percent of the time for corn and 54 percent for soybeans.

Bearish on corn: 19 Bearish on soybeans: 25 Bullish on corn: 13 Bullish on soybeans: 10

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