Sept. 30 (Bloomberg) -- Corn futures rose after a government report showed the U.S. hog herd unexpectedly expanded, signaling increased demand for livestock feed made from the grain. Soybeans fell, while wheat advanced.
The herd increased 0.3 percent to 68.360 million hogs on Sept. 1 from a year earlier, the U.S. Department of Agriculture said on Sept. 27. Ten analysts in a Bloomberg News survey projected a 1 percent decline, on average.
“There will be more pigs eating corn than expected,” Jerry Gidel, the chief market analyst at Rice Dairy LLC in Chicago, said in a telephone interview. “It will take a rally for farmers to sell” more grain after this year’s price slump, he said.
Corn futures for December delivery rose 0.2 percent to $4.55 a bushel at 10:18 a.m. on the Chicago Board of Trade. Through Sept. 27, the grain declined 35 percent this year. The U.S. harvest may rise to a record 13.84 billion bushels this season, up 28 percent from last year, the government has forecast.
Hog farmers also increased the number of sows retained for breeding by 0.4 percent from a year ago, a sign that output will increase. Prices in Chicago fell as much as 2.1 percent.
The U.S. soybean harvest may accelerate early this week as mostly dry weather is expected through Oct. 3, Commodity Weather Group of Bethesda, Maryland, said in a report.
Soybean futures for delivery in November declined 0.8 percent to $13.09 a bushel.
The oilseed headed for the first quarterly gain in a year on concern that dry weather would reduce output. The USDA may say today that stockpiles as of Sept. 1 were 127 million bushels, a nine-year low, according to a Bloomberg survey.
Wheat futures for December delivery gained 0.1 percent to $6.835 a bushel. The price climbed for the sixth straight session, heading for the longest rally in six months.
Rain delayed planting of winter grain in Russia and Ukraine, signaling more demand for U.S. supplies.
--Editors: Patrick McKiernan, Thomas Galatola