Chicago Agriculture Commodities Rose Friday
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) agriculture grains futures rose Friday, with Corn futures headed for the biggest gainer in 2 weeks after a US government report showed stockpiles trailed analyst estimates.
The most active Corn contract for December delivery added 7.5 cents, or 2.28%, to 3.3675 bu.
December Wheat delivery rose 3 cents, or 0.75%, to 4.02 bu.
November Soybean rose 3.75 cents, or 0.39%, to 9.54 bu.
Prices rose after the US Department of Agriculture (USDA), in a quarterly crop report, said 1.738-B bu of Corn were in storage as of 1 September.
That was fewer than agriculture analysts expected, indicating that livestock producers had fed more Corn to their animals than anticipated.
End-of-Quarter short covering was noted as helping the rally, after the USDA issued its data.
The agency further fueled notions that livestock producers had stuck with Corn as feed, instead of switching to Wheat, by reporting that 2.527-B bu of Wheat were in storage at the start of the month. That topped analysts’ expectations.
US Corn and Soybean exporters have seen increased demand after adverse weather hampered crops in South America. Low prices for the grain may also be enticing livestock producers to increase use of the commodity in feed for animals.
The report is a bit Bullish for Soybean and Corn as the stocks came in on the low side of expectations.
For the wheat market, it’s kind of a mixed bag with production a a bit less than expected but the stocks a bit higher than expected.
Have a terrific week.
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