Chicago agricultural commodities settle higher on bargain hunting

Chicago Board of Trade (CBOT) agricultural commodities rose Wednesday on bargain hunting after all three commodities fell to multi-month or multi-year lows a day earlier.

The most active corn contract for December delivery was up 1 cents, or 0.3 percent, to 3.35 dollars per bushel. September wheat delivery rose 9 cents, or 2.24 percent, to 4.1025 dollars per bushel. November soybeans was up 2.5 cents, or 0.26 percent, to 9.555 dollars per bushel.

Commercial buying and short-covering by the funds are the fundamental factors pushing up wheat, analysts say.

The supplement to the U.S. Commodity Futures Trading Commission's latest weekly commitments report showed non-commercials held a net short position in CBOT wheat of more than 142,000 contracts in the week to July 26, the third-largest on record.

Traders estimated that funds have expanded their net short in the days since, leaving the wheat market vulnerable to a short-covering rally.

CBOT corn and soybeans also rebounded after plunges on Tuesday that were tied in part to an improving outlook for crops in the Midwest.

Jack Scoville, the PRICE Futures Group's Senior Market analyst, says that the gains is mostly because of the big demand announcements.

"Prices have been weak and China has been taking advantage in the soybeans," Scoville says. Endit