CORN AND SOYBEANS EXTEND RALLY, NYSE:CPO, NYSE:ADM

Corn Products International Inc (NYSE:CPO), Archer-Daniels-Midland Company (NYSE:ADM)

Chicago Corn and Soybeans extend rally, Wheat falls

Boosted by supply reduction estimates, and weather uncertainty in Argentina, Chicago Corn and Soybean managed to carry Bullish sentiment into Friday’s action, further pushing up their 29 month highs, by contrast, Wheat suffered the biggest drop in one week.

The most active Corn contract for March delivery gained 6.25c, or 0.92%, to close at 6.4875 per bushel. Mar Wheat futures shed 10.25c, or 1.3%, to 7.7325 a bushel. Mar Soybean hiked 6.5c, or 0.459%, to 14.225 per bushel.

Market traders said that the reduction in the supply estimates by the US Department of Agriculture (USDA) continued to show its power in the day, further pushing up the prices of Corn and Soybean. Plus, the uncertainties in Argentina’s weather also gave another push.

Production of Corn in the United States dropped 4.9% in Y 2010 and will leave stockpiles before the Y 2011 harvest at the lowest level in 15 yrs, the USDA said on January 12, and the USDA also cut its estimate of the Soybean crop by 1.4%.

Besides, according to weather forecast, although Argentina will enjoy rainfalls in the weekend, which could help ease crop reduction concerns to some extent, the significant heat weather is expected to return in the next few weeks.

On the Wheat market, the fears of a slowing Chinese economy and a little “less” concerns for the wheat crop’s cold weather damage in the United States helped spark aggressive selling early in the day, said traders, who see warming weather in US plains and snow cover in the Midwest as short-term negative forces.

(Source: http://www.livetradingnews.com/corn-and-soybeans-extend-rally-nysecpo-nyseadm-32100.htm)