Corn rises on speculation price slump is over

Corn futures rise as traders speculate that price decline may be over for now

Associated Press

Corn futures rose Tuesday as traders speculated that recent price declines may be over for now.

The price of corn has slumped 38 percent this year as farmers produced a record harvest after drought ravaged the crop a year earlier.

"When you get a big harvest ... usually your seasonal low tends to come after harvest is complete," said Art Liming, an agricultural futures analyst at Citigroup. "There might be some people speculating that these might be the lows."

Corn for delivery in March rose 6.8 cents, or 1.6 percent, to $4.31 a bushel.

Wheat also rose on concern that colder weather forecasts in the Midwest could harm some of the dormant wheat crop that has already been planted.

March wheat gained 6.5 cents, or 1 percent, to $6.68 a bushel. Soybeans edged lower, dropping 1.5 cents, or 0.1 percent, to $13.20 a bushel.

In metals trading, gold edged down to a five-month low.

Gold for February delivery dropped $1.10, or 0.1 percent to $1,220.80 an ounce. Silver for March delivery fell 22.40 cents, or 1.2 percent, $19.07 an ounce. Copper for the same month fell 1.5 cents, or 0.5 percent, to $3.17 a pound.

Platinum for January delivery rose $9, or 0.7 percent, to $1,355.80 an ounce. Palladium for March delivery rose $1.40, or 0.2 percent, $714.80.

In energy trading, the price of oil rose to its highest level in more than a month on the prospect of more oil flowing out of a key storage hub in the middle of the U.S.

U.S. crude for January delivery rose $2.22, or 2.4 percent, to close at $96.04 a barrel in New York.

Wholesale gasoline gained 5 cents to $2.72 a gallon. Heating oil rose 2 cents to $3.06 a gallon. Natural gas fell 1 cent to $3.98 per 1,000 cubic feet.

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