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Chicago agricultural commodities settle higher on short-covering

Xinhua, September 28, 2016 Adjust font size:

Chicago Board of Trade (CBOT) grains futures close higher on Tuesday, amid short-covering by investors and signs the U.S. fall harvest is off to a slow start.

The most active corn contract for December delivery added 2.75 cents, or 0.84 percent, to 3.3175 U.S. dollars per bushel. December wheat delivery rose 8 cents, or 2.02 percent, to 4.04 dollars per bushel. November soybeans rose 7.25 cents, or 0.77 percent, to 9.525 dollars per bushel.

Rainfall delayed the U.S. corn and soybean harvests, while heavy precipitation could curb wheat output in Australia and reduce grain quality in Canada.

Soybean prices closed higher after touching a more-than- five-month low, as short-covering by investors helped shore up prices for the crop. Prices for the oilseeds fell for much of the session, pressured by reports of high yields from Midwest farmers which are fueling expectations that the nation's crop will be even larger than expected. The U.S. Department of Agriculture has projected this year's soybean crop will set records.

Continuing signs of foreign demand for U.S. soybeans also added to positive sentiment in the market, with the USDA reporting on Tuesday that private exporters had booked sales of 120,000 metric tons of soybeans for delivery to China.

U.S. corn and soybean harvests were advancing slightly slower than average, USDA data showed late on Monday, prompting some investors to take profits on bearish bets.

Wheat prices jumped, lifted by concerns over world weather and short-covering in the market. Forecasts for heavy rains in eastern Australia this week drove prices for the grain higher, as excess precipitation in that country could reduce crop quality for the rival producer.

Analysts said investors also were bailing out of bearish bets in the wheat market ahead of a quarterly report on grain stockpiles due out from the government on Friday. Although market watchers widely anticipate the report will show larger U.S. wheat stockpiles on Sept. 1 than a year ago, traders ahead of such a report often close out of bets the market will fall in order to minimize risk. Endit