Corn, Soybeans Higher as Strong China GDP Stokes Optimism
Soybeans and corn closed higher on Tuesday as China grew at a faster-than-expected rate in 2015 and on some potentially adverse global weather.
Gross domestic product in the Asian country, the world's biggest importer of soybeans, grew at a rate of 6.9% last year, according to the government.
While that is the slowest rate of growth since at least 1990, it's still better than forecast by analysts and near the government's projected rate of 7%. Analysts surveyed by Bloomberg had expected growth as low as 6.5%.
Dry weather in parts of Brazil that had been too wet at one point is giving a boost to prices, traders said. Growers in the South American country have started harvest.
While prices are better today, analysts have said growers should sell on rallies, which could keep prices range-bound.
"Overall, I continue to believe grain and soy markets have potential for additional strength through the end of the month but nothing outside of the ranges that we have been stuck within for weeks and months," said Dan Hueber, the author of The Hueber Report in Sycamore, Illinois. "In fact we could remain trapped in this extended sideways pattern until we begin to raise concerns about summer weather potential."
Soybean futures for March delivery added 2 1/4 cents to $8.81 1/4 a bushel on the Chicago Board of Trade. Soymeal for March delivery gained 10 cents to $270.80 a short ton, and soy oil futures added 0.31 cent to 29.96 cents a pound.
Corn futures for March delivery gained 4 1/2 cents to $3.67 3/4 a bushel in Tuesday trading.
Chicago wheat futures ended lower after trading on both sides of unchanged, falling 3/4 cent to $4.73 a bushel, while Kansas City contracts declined 3 cents to $4.71 a bushel.
In the outside markets, the Dow Jones Industrial Average fell 0.4% and the Standard & Poor's 500 dropped 0.7%, giving up early gains as sentiment turned bearish throughout the day.
West Texas Intermediate futures traded in New York plunged 3.2% while Brent crude added 1.1% on Tuesday.
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