Soybeans, Corn, Wheat Advance on Rising Investor Confidence

By Luzi Ann Javier

Feb. 10 (Bloomberg) -- Corn gained for a third day, and soybeans and wheat advanced, as concerns eased that Greece’s budget deficit may slow Europe’s economic recovery.

Corn for March delivery gained as much as 0.3 percent to $3.595 a bushel in after-hours electronic trading on the Chicago Board of Trade before trading at $3.5875 at 3:20 p.m. Singapore time. Soybeans for delivery in the same month added 0.2 percent to $9.265.

Olli Rehn, who is taking over as European Union economic affairs commissioner, said in an interview yesterday that support for Greece will be discussed within days. Lawmakers in Germany are considering financial assistance to Greece, Michael Meister, a legislator from Chancellor Angela Merkel’s Christian Democratic Union, said yesterday.

“We’re getting confidence back into the market,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by phone today. “The general good feel is translating to higher prices of commodities across the board.”

Prices also climbed after the U.S. Department of Agriculture lowered its estimates for global corn and soybean stockpiles this year, and boosted its outlook for demand, Barratt said.

The USDA cut its world corn inventory estimate before the next northern hemisphere harvest to 134 million metric tons, from 136.2 million in January. That compares with stockpiles of 146 million tons the previous year.

Draining Supplies

Global corn consumption will outpace production for the first time in three years, as rising use of the grain in ethanol production in the U.S., the world’s biggest consumer, grower and exporter, helps drain supplies, the USDA said.

The department raised its corn consumption estimate for the year that began Oct. 1 to a record 809.7 million tons, according to USDA data. The previous forecast in January was 806.2 million tons and last year’s figure was 775.2 million tons.

The output estimate was raised to a record 797.8 million tons, from 796.5 million in January, on increased production in Argentina, the USDA said.

Global stockpiles of soybeans on Oct. 1 will be 59.7 million tons, down from 59.8 million tons forecast in January, as the USDA increased its U.S. exports outlook. The average estimate of 13 analysts surveyed was 60.3 million tons. Stockpiles were at 41.6 million tons a year earlier, the department said.

China, the world’s biggest soybean buyer, may import 42 million tons of the oilseed in the year through September, the China National Grain & Oils Information Center said today. That’s 2 million tons more than the center’s January forecast and 16 percent higher than purchases a year earlier.

Boosting Imports

The Asian nation boosted soybean imports by 34.5 percent to 4.08 million metric tons in January from the previous year, the Beijing-based customs office said on its Web site today.

Wheat for March delivery climbed as much as 0.8 percent to $4.8625 a bushel and last traded at $4.84.

Two South Korean groups issued a joint tender to buy 165,000 metric tons of wheat for feed production for delivery between July and August.

The groups will hold the bidding at 5 p.m. in Seoul today, according to a copy of invitation to the auction e-mailed to Bloomberg News.

Wheat planting in Australia may decline because of low prices, Rabobank Groep NV said in a report e-mailed today. Australia is world’s fourth-largest exporter of the grain, according to the USDA.

A weakening Australian dollar was spurring export interest, particularly from Asian buyers, Rabobank said.

To contact the reporter on this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net.