Corn, Soybeans May Rise as Demand Climbs, U.S. Supplies Shrink

Jan. 17 (Bloomberg) -- Corn and soybeans may extend rallies from 29-month highs as consumers and speculators increase purchases after the government forecast reduced U.S. inventories.

Twenty of 28 traders and analysts surveyed from Tokyo to Chicago on Jan. 14 said corn will rise, and 18 of 29 respondents said soybeans will gain. Last week, corn futures for March delivery jumped 9 percent to $6.4875 a bushel on the Chicago Board of Trade, and soybean futures for March delivery rose 4.2 percent to $14.225 a bushel.

Last week’s gains in corn and soybeans were expected by the majority of respondents surveyed on Jan. 7. Since 2004, the surveys have been correct 53 percent of the time for corn, and 54 percent for soybeans.

(Source: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1ty9TVFMFL8)