Corn futures on the Chicago Board of Trade rose more than 2 percent on Wednesday, tracking the rally in soyabeans amid strong demand for grains and soya, traders said. December corn settled 8-1/4 cents, or 2.2 percent, higher at $3.83 per bushel, surging past nearby resistance at its 10-day moving average of $3.79-1/2.
The back months ended up 5-1/2 to 8-1/2 cents. Commodity funds bought 7,000 contracts, traders said. Options trade was heavy as firms liquidated December options positions before expiration next Tuesday. Firms were liquidating $3.60 and $3.70 puts and $4 calls. Open interest is heaviest at the $4 strike, but traders said they expected December futures to be drawn to the $3.80 to $3.85 level until expiration.
The CBoT soyabean market rallied to a 19-year high in a spot contract at $10.68-1/4 per bushel, driven by China's interest in US and South American soyabeans and soyaoil.
"The double-digit gains in the beans ... that is dragging corn along with it, and wheat too. None of the crops felt like being left out today," Iowa Grain analyst Gavin Maguire said. Weakness in the dollar and the strength in crude oil were supportive factors to all CBOT grain and soya markets.
The soft dollar is giving importers of US food and feed more buying power, which is reflected in strong export demand. The US Agriculture Department confirmed early Wednesday that Egypt bought 180,000 tonnes of US corn and Japan bought 106,680 tonnes, both 2007/08 supplies, within the last day.
US Midwest basis bids were firm after Tuesday's drop in futures and slowed sales as harvest was wrapping up, dealers said. USDA late Tuesday said the US corn crop was 94 percent harvested, ahead of the five-year average of 89 percent. CBOT oat futures were range-bound, up 3/4 cent to down 1/2 cent per bushel. December settled unchanged at $2.86-1/2.
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