Chicago Agriculture Commodities Finished Mixed
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) Corn extended some losses Wednesday, Wheat and Soybean finished higher on expectations of new demand for US agriculture products.
The most active Corn contract for Jul delivery lost 3.25 cents, or 0.82%, to close at 3.93 bu.
Jul Wheat delivery added 0.25 cents, or 0.05%, to settle at 4.5875 bu.
Jul Soybean gained 4.25 cents, or 0.38%, to close at 11.375 bu.
Rains fell in the Corn fields in the US Midwest and South Plains Wednesday, and forecast favored wetter and cooler weather in the next 10 days there. Agriculture analysts noted that rain continued easing worries about earlier dryness may dent Corn progress in these areas, weighing on Corn futures lower Wednesday. Corn already declined about 6% Tuesday.
The US Energy Information Administration (EIA) said Wednesday that till the week of 17 June, US production of Corn-based Ethanol production was 962,000 BPD, which is 5.03% lower than previous week’s 1,013,000. Analysts noted that these numbers turned Bearish in Corn as they boosted expectations that less Corn will be consumed for Ethanol.
Some agriculture analysts noted that Corn saw some short covering after its Tuesday loss, and the short covering prevented Corn from falling further Wednesday.
There were rumors on the market that some Gulf Arab (GCC) countries may buy US Soybean in the near future, and analysts noted that these rumors have prompted technical buying in Soybean, supporting Soybean Wednesday. Funds had bought 5,000 contracts of Soybean before mid-day Wednesday, according to the report of a Chicago-based agriculture consultancy.