Chicago Agriculture Commodities Finished Higher
$CORN, $WEAT, $SOYB
Chicago Board of Trade (CBOT) grains futures close higher Wednesday, with soybean futures rising on technical buying, export demand and spillover strength from Crude Oil.
Corn tracked Soybean higher while Wheat settled modestly firmer after a choppy session.
The most active Corn contract for December delivery rose 3.75 cents, or 1.06%, to 3.575 bu.
December Wheat delivery added 0.25 cents, or 0.06%, to 4.2025 bu.
November Soybean rose 9 cents, or 0.93%, to 9.815 bu.
Soybean and Soyoil futures drew support as US Crude Oil futures hit 15-month highs after the government reported a surprisingly large drop in domestic inventories.
Soyoil is tied to energy markets because of its use as feedstock for bio-diesel fuel.
Soybean drew additional support after the US Department of Agriculture (USDA) confirmed that private exporters sold 185,000 tonnes of US Soybean to unknown destinations for delivery in MY 2016/17.
The firm tone was impressive, given the fact that US farmers are in the thick of the harvest of record-large Soybean and Corn crops.
Corn drew support from Bullish weekly data on ethanol, which is made from Corn.
The US Energy Information Administration (EIA) said that Ethanol production last week increased by 36,000 BPD while stocks of the bio-fuel fell by 351,000 bbl
Wheat futures finished modestly higher. Agriculture analysts said that commodity funds hold a large net short position in CBOT Wheat, leaving the market vulnerable to periodic short-covering rallies.