Corn May Rally on Demand for Feed, Ethanol; Soybeans May Advance

Corn may rise this week on speculation that a doubling in prices the past year has not slowed demand for grain used in feed, fuel and food. Soybeans may rise as the U.S. plants the fewest acres in three years.

Twenty-two of 29 traders and analysts surveyed from Tokyo to Chicago on April 8 said corn will advance this week, and 20 of 30 respondents forecast a gain for soybeans. Last week on the Chicago Board of Trade, corn futures for May delivery gained 4.3 percent to $7.68 a bushel, a fourth straight gain. May soybean futures fell 0.1 percent to $13.9225 a bushel.

Last week’s advance in corn was expected by the majority of respondents surveyed on April 1, 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: 7 Bearish on soybeans: 10.

(Source: http://www.bloomberg.com/news/2011-04-10/corn-may-rally-on-demand-for-feed-ethanol-soybeans-may-advance.html)