Corn, Soybeans May Rise as U.S. Agency Forecasts Tight Supplies

Corn may extend a four-week rally and soybeans may gain after the government said U.S. supplies will be tight for 18 months.

Twenty-six of 34 traders and analysts surveyed from Tokyo to Chicago on Feb. 25 said corn will rise this week, and 23 of 35 respondents said soybeans will gain. Last week on the ChicagoBoard of Trade, corn futures for May delivery rose 0.2 percent to $7.22 a bushel, and soybeans futures for May delivery dropped 0.4 percent to $13.75.

Last week’s gain in corn was expected by the majority of respondents surveyed on Feb. 18, while the drop in soybeans was a surprise. Since 2004, the surveys have been correct 55 percent of the time for corn, and 52 percent for soybeans.

Bullish on corn: 26 Bullish on soybeans: 23 Bearish on corn: 8 Bearish on soybeans: 12

(Source: http://www.bloomberg.com/news/2011-02-28/corn-soybeans-may-rise-as-u-s-agency-forecasts-tight-supplies.html)