CHICAGO/MUMBAI (Commodity Online): US corn and soybean futures have gone bullish on prospects of lower production in South America on adverse weather conditions. Corn futures for March delivery has risen to $6.195 a bushel advancing 6.3% on week while soybean prices have climbed close to 3% on week to $11.725 a bushel. Dry weather conditions may limit output at Argentina and Brazil. This in turn will have positive impact on US supplies and hence further gains in prices are expected, analysts said.
The U.S. was the world’s largest producer and exporter of both commodities in the marketing year that ended Sept. 30. The Department of Agriculture says Brazil will top the U.S. this year as the largest shipper of soybeans. Argentina is the second-biggest corn exporter after the U.S. China is expected to increase purchases of US corn and soybean
The adverse weather in South America is similar to the 2008-2009 growing season, when a La Nina pattern strengthened in December,Bloomberg reported.
The CBOT will be closed December 26 for the Christmas holiday.
At India's National Commodities and Derivatives Exchange of India (NCDEX), maize (corn) January futures rose 3.39% last week to Rs 1203 per quintal while soybean rose 0.87% to Rs 2414 per quintal for the week ended December 24, 2011. In Monday afternoon trade, corn January futures have risen 1.70% to Rs 1223.50, soybean futures have risen 0.85% to Rs 2435.
