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Corn, Soybean Futures Up for Monday's Close
Wheat futures were mixed Monday while corn and soybeans closed higher.
Chicago wheat closed lower while Kansas City futures finished higher as traders attempt to get the spread between the contracts back to at least some semblance of normalcy. At the end of trading Monday, Chicago futures were 26.5 cents higher than those in Kansas City, which normally command a premium to their eastern counterparts.
Rainfall in the U.S. along with favorable weather in rival exporters has improved crop conditions while overseas demand remains weak.
As much as six times the normal amount of rain has fallen in the past month in much of western Kansas and the Oklahoma and Texas panhandles. A storm moving into the High Plains out of the Rockies today may bring snowfall, which will provide a blanket for recently emerged plants.
“We got some moisture on the wheat out this way, which I think will get us into dormancy,” said Larry Glenn, a grain analyst at Frontier Ag in Quinter, Kansas.
Exporters in the week that ended October 5 sold 226,670 metric tons of wheat to overseas buyers, down 38% from the prior four-week average, and commitments to buy U.S. wheat in the current marketing year are down about 17% from the same time frame in 2014, according to the U.S. Department of Agriculture.
Still, low prices are expected by analysts to encourage overseas buyers to make purchases to fill immediate needs.
Chicago wheat futures for December delivery on the Chicago Board of Trade fell 2 ¼ cents to $4.93 ½ a bushel. Kansas City wheat futures gained 1 ½ cents to $4.67.
Corn and beans rebounded from early losses on expectations for improved demand amid low prices.
December corn gained 1 ¾ cents to $3.60 a bushel on the CBOT.
Soybeans for January delivery rose 4 ¼ cent to $8.59 ½ a bushel. December soymeal was unchanged at $288.80 a bushel, and soyoil gained 0.19 cent to 27.23 cents a pound in Chicago.
In the outside markets, Brent crude futures gained 1% to $44.91 a barrel while WTI crude jumped 3.4% to $42.12 a barrel. Natural gas rose 1.1%. The Dow Jones Industrial average gained 1%.