Soybeans fell for a third day on speculation that a U.S. government report today will show supplies are more ample than previously estimated. Corn advanced and wheat rose in Paris.
Indian farmers may reap at least 6 percent more sugar than forecast by the government and industry, extending the longest global glut in more than a decade and a bear market that began in September.
The deepest slump in Australian wheat shipments in six years will exacerbate the biggest contraction in global exports in a generation after droughts withered crops around the world.
Corn will lead the advance in grains and oilseeds, outperforming wheat, in the fourth quarter as La Nina threatens to parch crops in Argentina and Brazil, curbing supply and draining inventories, Rabobank Groep NV said.
China, the world’s second-largest corn user, will probably delay purchases after the worst U.S. drought in half a century drove prices to a record, said UBS AG.
South American farmers are preparing to plant record grain and oilseed crops that may temper surging food inflation caused by the worst U.S. drought in a generation.
Sugar price prospects are “skewed to the upside” because of wet weather in Brazil, the world’s biggest producer, and a lack of rain in second-ranking India, according to UBS AG.
Soybeans and corn advanced on speculation that rains forecast in the U.S. may be unable to revive plants that have been parched by drought in the world’s largest grower. Wheat was little changed.
The sugar-cane harvest may be about 10 million metric tons higher than first forecast in the main growing area of Brazil, the world’s biggest producer, if dry weather persists, according to UBS AG.
China may become the world’s largest corn importer in five years as pork and chicken production increases, according to Rabobank Groep NV.
"Wheat supplies look set to tighten further."
- Wayne Gordon on Nov 09, 2012
UBS’s Gordon Says Drought Having Massive Impact