Corn rose to a five-week high on speculation that demand for imported grain will rise in China, the world s second-biggest producer.
China is more likely to use imported corn this marketing year because the government hasn t established a temporary reserve, Cngrain.com, a unit of China Grain Reserves Corp., said in a Dec. 13 report. China was a net importer of corn in the year that ended Sept. 30 for the first time in 14 years, according to the U.S. Department of Agriculture.
Chinese corn demand is rising as farmers expand livestock production to meet increased consumption of pork and beef, said Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana.
Corn futures for March delivery rose 5.5 cents, or 0.9 percent, to $5.9275 a bushel at 9:59 a.m. on the Chicago Board of Trade. Earlier, the price touched $5.945, the highest since Nov. 9. Before today, the most-active contract surged 57 percent since the end of June as adverse weather reduced U.S. production.
Demand in China will gain even as the Asian nation imposes monetary-tightening measures because it needs to import raw materials to curb food inflation, according to a report last month by Macquarie Bank Ltd.
Corn is the biggest U.S. crop, valued at $47.4 billion in 2008, government figures show. The U.S. is also the world s top producer and exporter.
