Corn climbed for the first time in three sessions as falling stockpiles revived speculation that supplies aren’t enough to meet demand. Wheat and soybeans rose.
Global corn stockpiles may fall 6.8 percent in the 2011-12 marketing year to 114.5 million metric tons, the U.S. Department of Agriculture said in a report on Aug. 11. The USDA lowered its global production forecast 1.4 percent to 860.5 million tons and its U.S. output estimate 4.1 percent to 328 million tons.
“Even though grain prices have come off a bit, they’re maintaining their strength pretty well,” said William Adams, a fund manager at Resilience AG in Zurich. “We have a really short inventory issue that we have to address. The fundamental picture is still intact.”
Corn for December delivery gained 3.25 cents, or 0.5 percent, to $7.1625 a bushel by 1:15 p.m.Londo time on the Chicago Board of Trade. The price has gained 0.2 percent this week.
Wheat for December delivery rose 2.5 cents, or 0.3 percent, to $7.4175 a bushel in Chicago. The most-active contract is up 1.3 percent this week. Milling wheat for November delivery traded on NYSE Liffe in Paris was little changed at 197.25 euros ($283.86) a metric ton.
Soybeans for November delivery rose 3 cents, or 0.2 percent, to $13.64 a bushel in Chicago. The price has risen 2.2 percent this week.