Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture commodities rose Wednesday on bargain hunting after all three commodities fell to multi-month or multi-year lows Tuesday.
The most active Corn contract for December delivery was up 1 cents, or 0.3%, to 3.35 bu.
September Wheat delivery rose 9 cents, or 2.24%, to 4.1025 bu.
November Soybean was up 2.5 cents, or 0.26%, to 9.555 bu.
Commercial buying and short-covering by the funds are the fundamental factors pushing up wheat, agriculture analysts say.
The supplement to the US Commodity Futures Trading Commission’s (CFTC) latest weekly commitments report showed non-commercials held a net short position in CBOT wheat of more than 142,000 contracts in the week to 26 July, the 3rd-largest on record.
Traders estimated that funds have expanded their net short in the days since, leaving the wheat market vulnerable to a short-covering rally.
CBOT Corn and Soybean also rebounded after dives Tuesday that were tied in part to an improving outlook for crops in the Midwest.
Jack Scoville, the PRICE Futures Group’s Senior Market analyst, says that the gains is mostly because of the big demand announcements.
“Prices have been weak and China has been taking advantage in the soybeans,” Mr. Scoville said.