Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) grains futures finished higher Tuesday, on short-covering by investors and signs the US Fall harvest is off to a slow start.
The most active Corn contract for December delivery added 2.75 cents, or 0.84%, to 3.3175 bu.
December Wheat delivery rose 8 cents, or 2.02%, to 4.04 bu.
November Soybean rose 7.25 cents, or 0.77%, to 9.525 bu.
Rainfall delayed the US Corn and Soybean harvests, while heavy precipitation could curb wheat output in Australia and reduce grain quality in Canada.
Soybean prices closed higher after touching a more-than 5-month low, as Short-covering by investors helped shore up prices for the crop.
Prices for the Oilseed fell for much of the session, pressured by reports of high yields from Midwest farmers which are fueling expectations that the nation’s crop will be even larger than expected. The US Department of Agriculture (USDA) projected this year’s Soybean crop will set records.
Continuing signs of foreign demand for US Soybeans added to positive sentiment in the market, with the USDA reporting Tuesday that private exporters had booked sales of 120,000 tonnes of Soybean for delivery to China.
US Corn and Soybean harvests were advancing slightly slower than average, USDA data showed late Monday, prompting some investors to take profits on Bearish bets.
Wheat prices rose, lifted by concerns over world weather and Short-covering in the market. Forecasts for heavy rains in eastern Australia this week drove prices for the grain higher, as excess precipitation in that country could reduce crop quality for the rival producer.
Agriculture analysts said investors also were bailing out of Bearish bets in the wheat market ahead of a Quarterly report on grain stockpiles due out from the government Friday.
Although market watchers widely anticipate the report will show larger US Wheat stockpiles on 1 September than a year ago, traders ahead of such a report often close out of bets the market will fall in order to minimize risk.