Chicago Agriculture Commodities Extend Gains
$WEAT, $SOYB, $CORN
Chicago Board of Trade (CBOT) Wheat and Soybean extended gains Wednesday on technical buying, Corn flat to unchanged.
The most active Corn contract for Dec delivery was unch at 3.805 bu.
Dec Wheat delivery advanced 9.75 cents, or 1.89%, to close at 5.2625 bu.
Jan Soybean rose 5 cents, or 0.57%, to close at 8.84 bu.
Technical considerations driving wheat to new weekly highs, and this support spilled into the Soybean and Corn markets, the Chicago HQ’d independent agriculture consultancy said in its daily commentary.
CBOT floor brokers estimated that funds have bought 3,000 contracts of Corn, 4,500 contracts of Wheat and 3,500 contracts of Soybean before midday, according to the analysts
Dryness in Russia and Ukraine will deteriorate the Winter Wheat there, which added support to US Wheat because less export is expected from there.
US Soybean also benefited from less export expectations from Brazil due to dryness. The Brazilian Soybean harvest was forecast at 98.5-M tonnes by US Department of Agriculture’s (USDA) bureau in Brasilia, according to a report Wednesday.
The weekly Ethanol production report released by the US Energy Information Administration (EIA) Wednesday showed US Ethanol production rose to 969,000 BPD through the week ending 30 October, comparing with 944,000 BPD of the prior week. Analysts said that the report is Bullish to corn futures as US Ethanol producers use Corn as their major feedstock.
Stay tuned…
HeffX-LTN
Paul Ebeling
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