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Rains in US Boosts Corn Prices, Suppress Soybeans Prices

April 5, 2011 at 2:47 by Vladimir Vyun

Corn jumped to the highest level in 33 months on the prediction that the US stockpiles will decline. According to the data released by the US Department of Agriculture, the US inventories of corn shrank to 6.523 billion bushels, the lowest for level in four years, on March 1 because of rising consumption of grain as livestock feed, biofuel and food products. The decrease of inventories caused not only by the rising demand, but also by declining supply as the wet weather in the US is expected to slow planting. May futures for corn delivery gained $0.2425 (3.3 percent) to $7.6025 per bushel by 13:15 on CBoT, the all-time record closing price for a contract closest to expiration.

The rains, that boosted price for corn, caused decline of soybeans prices. That’s because farmers will switch to planting of soybeans after rainfalls prevented planting of corn. May futures for soybean delivery slipped $0.0975 (0.7 percent) to $13.84 per bushel.

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