Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) grains futures finished higher Thursday as investors covered short positions and bought at bargain prices after the grains dove multi-year lows during 8-day skids on prospects of abundant US and world supplies.
The most active Corn contract for December delivery was up 8.25 cents, or 2.61%, to 3.2375 bu.
December Wheat delivery rose 6.5 cents, or 1.67%, to 3.9475 bu.
November Soybean rose 0.75 cents, or 0.08%, to 9.4375 bu.
Corn prices led the gains, rising from a 7-year low marked Wednesday as speculative investors holding bets on falling corn prices bailed out of those positions, which lifted the market.
Investors including commodity fund managers have recently been betting that Corn prices will drop as farmers begin harvesting what is projected to be the largest crop in US History.
Thursday agriculture analysts said some investors began shedding Bearish Corn bets amid speculation that prices have fallen so low that growers will stop selling their grain supplies, which would help shore up the market.
Wheat prices rebounded after marking a new 10-year low Wednesday. Prices for the grain dove this week amid export concerns and federal data showing the US Spring Wheat harvest was proceeding at an unusually quick pace, with new grain supplies piling on top of already abundant US and world inventories.
A weaker USD benefited Corn and Wheat prices, with the Buck down 0.3% in mid-day trade. That is supportive for grain prices because it makes agricultural products less expensive for overseas buyers.
The USDA’s weekly export sales report showed sales of 107,500 tonnes of old-crop Soybean and 1,476,400 tonnes of new-crop Soybean in the week to 25 August in line with trade expectations.