Chicago Agriculture Commodities Finished Higher
$WEAT, $CORN, $SOYB
Chicago Board of Trade (CBOT) Wheat, Corn and Soybean futures finished sharply higher Wednesday following Tuesday’s big jump.
The most active Wheat contract for July delivery gained 18 cents, or 3.64%, to 5.1225 bu.
July Corn delivery added 10.25 cents, or 2.63%, to 3.9975 bu.
Soybean for May delivery rose 24.25 cents, or 2.44%, to 10.19 bu.
July Wheat extended gains to a 3rd session running Wednesday, hitting a new high since 9 November 2015, even as the world is on track to produce another record Wheat crop which will further build stockpiles.
The rally in US Wheat values has nothing to do with Wheat fundamentals, but is due to fund short covering and money flow.
Corn futures also advanced strongly on the day, boosted by the rumor that US Corn was sold to Brazil where the crop had been suffering from dry weather.
US Corn also got support from the Bearish data released by the US Energy Information Administration (EIA) Wednesday which showed a slight rise in Ethanol production and a drop in inventory.
US Ethanol production through the week ending 15 April was up a bit from the prior week to 939,000 BPD, while US Ethanol stocks decreased by 1.2% during the week.
Wednesday, the most active Soybean contract settled above 10.00 bu for the 1st time since July 2015, marking a new 9-month high. Its advance was boosted by speculations that Argentine might further cut its Soybean production due to excessive rainfall.