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Chicago grains, soybeans rally strongly for two consecutive sessions

Xinhua, April 21, 2016 Adjust font size:

Chicago Board of Trade (CBOT) wheat, corn and soybean futures closed all sharply higher Wednesday following the previous big jump.

The most active wheat contract for July delivery gained 18 cents, or 3.64 percent, to 5.1225 U.S. dollars per bushel. July corn delivery added 10.25 cents, or 2.63 percent, to 3.9975 U.S. dollars per bushel. Soybean for May delivery rose 24.25 cents, or 2.44 percent, to 10.19 dollars per bushel.

July wheat extended gains to a third straight session Wednesday, hitting a new high since Nov. 9, 2015, even as the world is on track to produce another record wheat crop which will further build stocks.

The rally in U.S. wheat values has nothing to do with wheat fundamentals, but is due to fund short covering and the flow of money, said AgResource company, a Chicago-based agricultural research institute.

Corn futures also advanced strongly for the day, bolstered by the rumor that U.S. corn was sold to Brazil where the crop had been suffering from ongoing dry weather.

U.S. corn also got support from the bearish data released by the U.S. Energy Information Administration Wednesday which showed a slight rise in ethanol production and a drop in inventory.

U.S. ethanol production through the week ending April 15 was up slightly from the prior week to 939,000 barrels per day, while U.S. ethanol stocks decreased by 1.2 percent through the week.

On Wednesday, the most active soybean contract settled above 10 dollars per bushel for the first time since July 2015, logging a new nine-month high. Its advance was buoyed by speculations that Argentine might further cut its soy production due to excessive rainfall. Endit