NEW YORK(Commodity Online): Corn frenzy has gripped the CBOT as the commodity advanced most in 16 months on the exchange when investors flocked to buy the commodity after it witnessing 23% slump last month.
Corn for December delivery jumped as much as 1.2 percent to $6.525 a bushel on the Chicago Board of Trade and was seen trading at 6.48 a bushel at 11:15 a.m. Singapore time, said Bloomberg in a report.
The advance is also driven by the fact that corn reserves are at their lowest levels in five years; world stockpiles may touch 120.5 million tons at the end of this season, higher than last month’s 117.4 million- ton projected by the USDA, according to the average estimate of analysts surveyed by Bloomberg
Meanwhile soybeans for November dropped 1.9% to touch $12.115 a bushel, subsequent to closing 4.9 percent higher Tuesday (the biggest advance since Oct. 8, 2010).
Bloomberg calculations reveal that gobal soybean stockpiles may touch 63.35 million tons at the end of this season, compared to 62.55 million tons forecast by the USDA in September.
On the CBOT, soybean climbed and secured the biggest gains in six weeks Tuesday as China boosted imports and on expectations that record demand in the form of cooking oil consumption and livestock feed requirements would outdo harvests.