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Soybeans Rise Near to 8-Month High, Corn Gains to 7-Month Peak

June 1, 2009 at 8:48 by Andriy Moraru

Soybeans jumped close to an eight- month high and corn climbed to a more than seven-month peak on speculation rain may delay planting, possibly damaging yields for some crops already seeded in the U.S. Midwest.

Rain that falls over the next few days will hinder planting efforts of farmers, according to a forecast yesterday from Corn planting remains several weeks behind schedule in parts of the Midwest, it said. In areas where planting has taken place, any new flooding issues could damage existing crops, the forecaster said.

“Forecast for rain this week has stoked concerns over planting delays of corn as well as soybeans,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co.

Soybeans for July delivery added as much as 1.3 percent to $11.995 a bushel on the Chicago Board of Trade and were $11.99 by 10:04 a.m. Singapore time. The most-active contract rose 1.5 percent last week, climbing for a fifth straight week, and jumped 12 percent in May, the third straight monthly advance. The price touched $12.0075 on May 27, the highest since Sept. 25.

U.S. soybean inventories on Aug. 31, before the harvest, will drop to a five-year low of 130 million bushels from 205 million bushels a year earlier, the USDA said on May 12.

The weaker dollar has boosted demand for soybeans and corn as well as other commodities, Kikukawa said. The dollar weakened to a five-month low on May 29 and fell 7 percent in May, its biggest monthly decline this year against the euro.

From Bloomberg News.

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