Corn, Soybeans May Rise on Tightening Supplies, Adverse Weather

Corn may extend a five-week rally and soybeans may gain on speculation that a government report this week will show rising demand is eroding U.S. inventories, while wet, cold weather threatens to delay U.S. planting.

Twenty of 27 traders and analysts surveyed from Tokyo to Chicago on March 4 said corn will rise this week, and 21 of 28 respondents said soybeans will gain. Last week on the Chicago Board of Trade, corn futures for May delivery rose 0.8 percent to $7.28 a bushel. Soybeans futures for May delivery climbed 2.8 percent to $14.14, the first advance in four weeks.

Last week’s gains for both commodities were expected by the majority of respondents surveyed on Feb. 25. Since 2004, the surveys have been correct 55 percent of the time for corn, and 53 percent for soybeans.

Bullish on corn: 20 Bullish on soybeans: 21 Bearish on corn: 7 Bearish on soybeans: 7

(Source: http://www.bloomberg.com/news/2011-03-07/corn-soybeans-may-rise-on-tightening-supplies-adverse-weather.html)