Grains jump on post-selloff buying
U.S. grain and soybean futures settled higher Wednesday, boosted by buying after recent price declines.
Corn and soybean futures benefited from buyers taking renewed interest in the two commodities after sharp price declines last week. The declines, largely driven by expectations for large harvests of the two crops this fall, took prices to levels that some traders saw as undervalued, as uncertainty remains about the final size of each crop.
Grain and soybean futures also likely rose because money managers, hoping to book profits before the end of the month, bought futures to exit earlier bearish bets on prices, analysts said. Managed funds as of July 23 had increased their bearish bets in Chicago Board of Trade corn, wheat and soybean markets, the most recent available regulatory data shows.
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Wheat futures also rose on strong recent export demand for U.S. wheat, including large purchases by China earlier this month. Many traders expect strong demand to continue, though the U.S. faces tough price competition from other major exporters, including in the Black Sea area.
CBOT September corn futures settled up 3 1/2 cents, or 0.7%, at $4.99 a bushel. August soybean futures rose 24 cents, or 1.8%, to $13.74 a bushel. CBOT September wheat rose 9 cents, or 1.4%, to $6.64 1/4 a bushel.
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(END) Dow Jones Newswires
July 31, 2013 14:38 ET (18:38 GMT)
DJ U.S. Grains, Soybeans Settle Higher on Post-Selloff Buying->copyright
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