Chicago Agriculture Commodities Extended Tuesday’s Gains
$WEAT, $CORN, $SOYB
Chicago Board of Trade (CBOT) Corn, Soybean extended their gains Wednesday, Wheat rebounded on short covering before an important official report release.
The Corn contract for Dec delivery added 4.50 cents, or 1.19%, to close at 3.8325 bu.
Sept Wheat delivery gained 8.50 cents, or 1.72%, to close at 5.02 bu.
Nov Soybean rose 11 cents, or 1.17%, to close at 9.5325 bu.
Analysts said that all the 3 major agriculture commodities finished higher because of short covering as investors were awaiting for a report scheduled for 12 August from the US Department of Agriculture (USDA).
It is expected that the USDA may pare its yields forecast for Soybean and other agriculture grains.
Floor brokers estimate that funds have bought 3,500 contracts of Corn, 2,500 contracts of Wheat, 5,000 contracts of Soybean before midday Wednesday, according to the data.
The US Energy Information Administration (EIA) reported Wednesday that US Ethanol production was 961,000 bbl till the week of 31 July, down 4,000 bbls from the prior week and lowest since May 2015.
Some analysts said that this report was Bearish Corn as Ethanol production is a Key element in US Corn demand. There were also Bearish news for Wheat as Egypt said it bought Russian Wheat in its latest tender with lower prices when compared to US Wheat, according to analysts.
Stay tuned…
HeffX-LTN
Paul Ebeling
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