Corn, Soybeans May Advance on Bets Global Demand Remains Strong

Corn may extend a rally and soybeans may reverse last week’s decline on bets that global demand remains robust, and that farmers will require higher prices when deciding what crops to plant this spring.

Nineteen of 30 traders and analysts surveyed from Tokyo to Chicago on Feb. 11 said corn will rise this week, and 18 of 31 respondents said soybeans will gain. Last week, corn futures for May delivery rose 4.1 percent to $7.1725 a bushel on the Chicago Board of Trade. Soybeans for March delivery lost 1.2 percent to $14.16 a bushel.

Last week’s gain in corn was expected by the majority of respondents surveyed on Feb. 4, while the drop in soybeans was a surprise. Since 2004, the surveys have been correct 54 percent of the time for corn, and 53 percent for soybeans.

Bullish on corn: 19 Bullish on soybeans: 18 Bearish on corn: 11 Bearish on soybeans: 13.

(Source: http://www.bloomberg.com/news/2011-02-14/corn-soybeans-may-advance-on-bets-global-demand-remains-strong.html)