Spec-buying, weather boost grains
U.S. grain and soy futures settled higher Tuesday, boosted by a mix of speculative buying and worries about a hotter, drier weather forecast for Midwest crops.
Speculative market participants bought futures after a government report on Monday afternoon showed managed funds had recently piled on bearish bets in the grain markets. Many traders concluded the selling had been overdone, considering that current supplies of corn and soybeans remain historically tight. Some traders reacted by buying futures to exit earlier bearish bets in corn, wheat or soybeans, while others placed new bullish bets, analysts said.
Grain and soy markets got an extra boost Tuesday from worries about the weather. Forecasts on Tuesday suggested hot, dry weather could move into the Midwest for much of next week, raising worries about potential damage to crops at a time when many corn plants are approaching their delicate pollination phase.
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Chicago Board of Trade July corn settled up 12 1/4 cents, or 1.8%, at $7.04 a bushel, the highest settlement for the front-month contract on a continuation chart since May corn futures expired May 14.
July soybean futures rose 4 cents, or 0.2%, to $16.13 1/4 a bushel, a nine-month closing high for the front month. CBOT July wheat rose 15 1/2 cents, or 2.3%, to $6.75 1/2 a bushel, a two-week closing high.
Trading in July futures is thin as they approach their last trading day on Friday.
Write to Owen Fletcher at email@example.com
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(END) Dow Jones Newswires
July 09, 2013 14:41 ET (18:41 GMT)
DJ U.S. Grains, Soy Settle Higher On Speculative Buying, Weather->copyright
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