Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) grains futures finished higher Wednesday as optimism over demand and uncertainty over the size of coming harvests drove short-covering in agriculture grain markets.
The most active Corn contract for December delivery rose 4.75 cents, or 1.45%, to 3.3325 bu.
December Wheat delivery closed up 4.25 cents, or 1.07%, to 4.0275 bu.
November Soybean rose 15.75 cents, or 1.64%, to 9.755 bu.
Soybean prices led the gains, rising after the US Department of Agriculture (USDA) said private exporters sold 484,000 tonnes of the Soybean to China and unknown destinations. While US farmers are expected to collect the biggest Soybean crop ever this year, confidence is growing among grain traders that the pace of export sales will help chew through the glut of supplies.
Investor short-covering and forecasts for wet weather across the US Midwest in coming weeks also bolstered up the Soybean market. Persistent rains could delay the nation’s harvest.
Wheat traders were optimistic that cheap US grain could be sold to Northern African destinations such as Algeria and Morocco, while top importer Egypt rejected a cargo of Romanian Wheat because of strict quality specifications.
A steep decline in the USD Vs a basket of currencies Tuesday made US goods more competitive in global markets, supporting grain and Soybean futures at the Chicago Board of Trade. The USD reversed a portion of the decline Wednesday, as the US Fed said the economy slowed in in July and August.