Chicago soybeans, wheat fall on world demand concerns; corn higher

Chicago Board of Trade (CBOT) agricultural commodities closed mixed on Wednesday with soybeans leading the losses as oil prices slump added more concerns on the world economy, and wheat also ower, while corn higher.

The most active soybean contract for March delivery fell 9.5 cents, or 1.08 percent, to close at 8.74 dollars per bushel. Wheat for March delivery lost 3 cents, or 0.63 percent, to close at 4.715 dollars per bushel. Meanwhile, March corn delivery added 1 cents, or 0.27 percent, to close at 3.6875 U.S. dollars per bushel.

The protracted downturn in crude oil prices, which fell to a new low since 2003 on Wednesday, triggered global stock selloff, lifting worries about slowing global demand.

"The concern is the weakness in the world economy with energy producing nations struggling to raise enough cash for their own domestic economies," AgResource company, a Chicago-based agricultural research institute, wrote in a note. The company added, "The funds have liquidated half of their net short position in soybeans and Brazilian and Argentine farmers are more aggressive sellers."

Chicago wheat slipped for the day as concerns over foreign demand for U.S. supplies continue to weigh on prices overall amid stiff world export competition.

Corn prices extended their gains on short covering after the weekly ethanol production report released by the U.S. Energy Information Administration on Wednesday showed a moderate rise in production which was seen as slightly bullish to corn future.

U.S. ethanol production through the week ending Jan. 8, was up 0.7 percent from the prior week, to 1,003,000 barrels per day. Enditem