US corn and wheat futures rallied on Wednesday on a bargain-buying bounce after prices fell to multiweek lows earlier this week, traders said. Soyabean futures also rose, following the strength in grains, with the front-month contract posting its fifth straight day of gains.
Chicago Board of Trade corn notched the biggest increase, rising 2.5 percent as it received additional support from export sales to China. Prices for the benchmark July contract broke through key resistance points such as its 50-day moving average. "All we are seeing here right now is a little bit of technical recovery," said Karl Setzer, a commodity trading adviser at MaxYield Co-operative in West Bend, Iowa.
At 10:19 am CDT (1519 GMT), CBOT July corn futures were up 16 cents at $6.56 a bushel while CBOT July wheat was 12-1/4 cents higher at $6.92-3/4 a bushel. On Tuesday, CBOT corn hit its lowest price since April 8 on a continuous basis while wheat dropped to its lowest since April 3. CBOT July soyabeans were up 5-1/4 cents at $14.83-1/2 a bushel. The July contract peaked at $14.86, its highest since October 1.
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