Corn, Soybeans Rally on Increased Buying
Corn and soybeans rallied on Tuesday amid speculation that global demand will increase as different nations buy more food for reserve to avoid food shortage.
Corn futures for May delivery increased by 2.8 percent or 16.25 cents, to $6.08 a bushel on the Chicago Board of Trade.
Corn prices increased by 55 percent last year, and posted the highest gain this year when it increased as high as $6.16 on April 9.
Soybean futures for July delivery gained 1.5 percent or 21.25 cents to $14.105 a bushel.
Soybean prices increased by 85 percent last year, posting the highest record on March 3 when it reached $15.8625.
Soybean oil futures for July delivery gained 2.3 percent or 1.42 cents to 63.67 cents a pound.
Soybean oil prices increased by 85 percent last year posting the highest record of 72.69 cents on March 4.
In an effort to control domestic prices for bread and other foods, Kazakhstan, the world's fifth largest wheat exporter, banned shipments of the grain until Sept. 1.
According to the United Nations Food and Agriculture Organization, global food prices were up by 57 percent in 2007.
U.S. food prices in March were 1.2 percent high led by increase in vegetables, rice, beef and veal.
Corn and soybeans gain was attributed to energy costs that increased signaling that demand for biofuels will increase.
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