US MIDDAY: corn, soya and wheat up

September 06, 2014 – Reuter

corn-soya-wheat-up
Chicago Board of Trade corn, soyabean and wheat futures rose early on Friday, rebounding from losses earlier in the week that pushed prices to contract lows on a round of bargain buying and short-covering, traders said. “We have been beaten up ever since we came back from Labour Day weekend, said Dewey Strickler, president of grain consultancy Ag Watch Market Advisors. “We are due to get a little recovery, and that is exactly what we have done. Long story short, that’s it.”

Corn and soyabeans posted the biggest gains, receiving additional support from afternoon forecasts that raised the prospects of freezing weather that could damage crops in northern areas of the Midwest next week. “The market decided to put a little risk premium into prices before the weekend with continued forecasts for frost in the northern belt late next week,” Charlie Sernatinger, analyst with ED&F Man Capital, said in a note to clients.

Concerns about harvest delays for the spring wheat crop and quality concerns following rains in the Northern Plains boosted wheat futures. Chicago Board of Trade soft red winter wheat for December delivery settled up 5 cents at $5.35-1/4 a bushel, snapping a streak of four straight negative sessions. MGEX December spring wheat rose 3-1/2 cents higher to $6.11-1/2 a bushel.

CBOT November soyabeans were 18-1/4 cents higher at $10.21-1/2 a bushel. CBOT December corn, which also had fallen for four days in a row, rose 9-1/2 cents to $3.56 a bushel. Corn and soyabeans had touched four-year lows in the previous session as the approach of what are expected to be record US corn and soyabean harvests fuelled selling. Wheat also received support on Friday from news that Russia’s agriculture ministry had proposed a curb on grain exports to balance the domestic market in a letter to the government, although the ministry later denied this.

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