Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures finished higher Wednesday, driven by investment fund buying and expectations for increased export demand as harvests neared completion.
The most active Corn contract for December delivery rose 4.75 cents, or 1.36%, to 3.54 bu.
December Wheat delivery added 7.25 cents, or 1.79%, to 4.115 bu.
November Soybean rose 19.25 cents, or 1.94%, to 10.10 bu.
Soybean futures rose to a 2-month high.
Soymeal futures surged more than 3% for their largest daily gainer since June as traders unwound Soymeal-Soyoil spreads.
The harvest of a record-large US Soybean crop was 75% finished, and farmer sales of fresh supplies was expected to slow soon.
Weekly US grain and Soybean export data is due early Thursday and many traders expected lofty sales of Soybean, with estimates as high as 2.5 tonnes. Sales of Corn could top 1.2-M tonnes and Wheat 550,000 tonnes.
The USD eased from Tuesday’s 9-month high against a basket of currencies, making US goods comparatively cheaper in some international markets.
Gains in Wheat came after top global buyer Egypt Tuesday made its biggest purchase in more than a year.
“Egypt’s state grains buyer GASC made a large purchase of 420,000 tonnes of Wheat in a tender Tuesday at prices mostly higher than at its previous tender on 20 October, which is an overall encouraging demand sign with US Wheat offered but not bought by GASC,” said a senior commodity analyst at Rabobank.
The large GASC purchase raises hopes that Egypt’s Wheat imports are normalizing after massive disruption in recent months from conflicting rules on levels of the ergot fungus in imports. This could help to soak up large global Wheat supplies.