Corn, Soybeans May Rise on Speculation Supplies are Declining

Corn may rise on speculation that the U.S. government this week will report smaller inventories left from last year’s crop than a year earlier. Soybeans may rise on expectations that higher returns for other crops will cut the area sown with the oilseed in the U.S.

Twenty-two of 27 traders and analysts surveyed from Tokyo to Chicago on March 24 said corn will advance this week, and 20 of 28 respondents said soybeans will gain. Last week on the Chicago Board of Trade, corn futures for May delivery rose 0.9 percent to $6.895 a bushel, and soybeans futures for May delivery declined 0.3 percent to $13.5825 a bushel.

Last week’s advance in corn was expected by the majority of respondents surveyed on March 18, while the drop in soybeans was a surprise. Since 2004, the surveys have been correct 56 percent of the time for corn, and 53 percent for soybeans.

Bullish on corn: 22 Bullish on soybeans: 20 Bearish on corn: 5 Bearish on soybeans: 8

(Source: http://www.bloomberg.com/news/2011-03-27/corn-soybeans-may-rise-on-speculation-supplies-are-declining.html)