U.S. Wheat and Soybeans Find Buyers; Corn Flat to Lower
Category: Grains, Miscellaneous, Oilseeds
(Nasdaq) – Prices of U.S. wheat and soybean futures rose on Wednesday, as weather concerns buoyed the grain and optimism over demand boosted prices for the oilseeds.
Meanwhile, corn prices were mixed.
Wheat prices climbed to a nearly one-month high, after trading lower earlier in the day on technical buying and continuing weather concerns in key world-wheat growing regions. Though forecasts for helpful rains in the southern U.S. and Russia have promised to relieve some dryness in those countries, analysts said the poor condition of Russian crops headed into their winter dormancy phase helped prices for the grain swing to gains on the day.
The wheat market has oscillated in recent days, as traders weighed concerns over adverse weather with expectations for record global supplies and weak demand for the U.S. crop.
“We’ve chopped around a lot in wheat,” said Drew Wilkins, senior broker at Daniels Trading in Chicago, adding: “it will likely take severe weather issues overseas or geopolitical problems to spur prices much higher.” Mr. Wilkins also said short-covering by hedge funds and others helped pushed prices up on Wednesday.
Wheat futures for December delivery gained 9 3/4 cents, or 1.9%, to $5.26 1/4 a bushel at the Chicago Board of Trade, the highest closing price since Oct. 6.
Soybean prices also advanced, bolstered by continued strong demand for U.S. oilseeds, especially from China. After a slow start to the export season, Chinese buyers have increased purchases of U.S. soybeans in recent weeks, helping shore up prices for the crop. CBOT November soybeans added 3 1/2 cents, or 0.4%, to $8.82 a bushel.
Corn prices closed the trading session flat to lower, giving up earlier gains thanks in part to expectations that the U.S. Department of Agriculture in its monthly crop report on Nov. 10 will raise federal forecasts for domestic production this year. “The corn market has just been trotting along sideways waiting to see what USDA says on Tuesday,” said Mr. Wilkins.
CBOT December corn was unchanged. March-dated futures declined 1/2 cent, or 0.1%, to $3.88 1/4 a bushel.
