Chicago Agriculture Commodities Finished Higher
$WEAT, $CORN, $SOYB
Chicago Board of Trade (CBOT) grains futures finished higher Thursday, with Wheat futures jumping about 5% as a flurry of export deals prompted funds to cover short positions.
The most active Corn contract for December delivery rose 12.5 cents, or 3.71%, to 3.495 bu.
December Wheat delivery added 19.25 cents, or 4.85%, to 4.16 bu.
November Soybean rose 10.75 cents, or 1.14%, to 9.5625 bu.
Wheat posted the biggest advance on a percentage basis. The December contract reached 6-week high, and surpassed its 50-Day MA, a bullish technical signal.
Commodity funds held a historically large net short position in CBOT Wheat as of 4 October. leaving the market vulnerable to short-covering rallies.
Also, export business picked up in the last day, with Saudi Arabia and Egypt both announcing plans to buy Wheat. Algeria announced a purchase tender earlier this week, and Syria struck a deal to purchase 1-M tonnes of Russian Wheat.
Short-covering also lifted Corn, along with strength in the domestic cash market.
As the US harvest nears the halfway point, farmers generally have been selling Soybean but storing their Corn, holding out for higher prices.
Soybean rallied from early declines, following strength in Corn and Wheat as well as in Crude Oil. A softer US Dollar (.DXY) Index added support to commodities, making US goods more attractive on the global market.
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