Chicago Agriculture Commodities Finished Higher

Chicago Agriculture Commodities Finished Higher


Chicago Board of Trade (CBOT) agriculture grains futures finished higher Wednesday with Soybean futures rising on commodity fund buying at the start of a new month along with fresh export demand.

March Corn delivery rose 8.5 cents, or 2.36%, to 3.6825 bu.

March Wheat delivery added 13 cents, or 3.09 percent, to 4.3375 bu.

March Soybean rose 12.25 cents, or 1.2%, to 10.3675 bu.

Soybean rallied as trade resumed after the daily 45-min pause, supported by confirmation from the US Department of Agriculture (USDA) that private exporters sold 236,700 tonnes of US Soybean to unknown destinations in the last day.

CBOT Soybean futures had been in retreat for the last week as improving weather bolstered Soy crop prospects in South America, after mid-January floods in Argentina lifted futures to a 6 month high.

Speculators also appeared to be investing in grains on the 1st day of February.

Corn got a boost when the US Energy Information Administration (EIA) reported production of Corn-based Ethanol in the latest week rose to a record-high 1.06-M BPD, surpassing a high struck earlier in January.

However, Ethanol futures fell after the EIA data showed that stocks of the Corn-based biofuel rose to 21.87-M barrels, the most since May.

CBOT Wheat posted the biggest advance in the grains complex on a percentage basis, but traders said the move was primarily technical. Commodity funds hold a large net short position in CBOT Wheat futures, leaving the market vulnerable to bouts of short-covering.

Stay tuned…

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