Grains gain on dry forecast
U.S. corn futures ended the trading session Wednesday priced higher, as market participants continued to reposition following a monthly supply-and-demand report from the U.S. Department of Agriculture on Monday.
The agency surprised many industry watchers by downwardly revising estimates for the year's corn crop yield and total production. And on Wednesday, traders continued consolidating their positions to reflect the potential for a smaller harvest.
But lingering sentiment that the USDA's corn production estimates could rise in coming monthly reports tempered some of the bullishness from Monday's estimates.
With prices yet to settle, Chicago Board of Trade Chicago Board of Trade September corn was up 9 1/4 cents, or 2%, at $4.64 1/2 a bushel. That contract settled at a three-month low the day before.
Soybean futures also ended the trading day mostly higher amid continued worries about unfavorable weather forecasts and a reduced USDA forecast for output this year.
Meantime, September soybean prices were up 13 1/4 cents, or 1%, at $12.71 a bushel. November soybeans were up 10 1/2 cents, or 0.9%, at $12.38 1/4 a bushel. August soybean contracts expired Wednesday.
An export sale to China also supported soybean futures. The USDA said on Wednesday morning that private exporters reported selling 110,000 metric tons of soybeans to China for delivery during the next marketing year, which starts Sept. 1.
Wheat futures fell, following on Tuesday's declines in corn prices. Traders said they continue to see the spread between the price of the two crops leaving wheat too highly valued against corn, despite the latter's price gains Wednesday.
CBOT September wheat was up 2 1/2 cents, or 0.4%, at $6.30 3/4 a bushel.
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(END) Dow Jones Newswires
August 14, 2013 14:48 ET (18:48 GMT)
DJ U.S. Corn and Soybean Futures Rise After Forecasts->copyright