US wheat futures jumped more than 1 percent on Wednesday as a recent plunge to four-year lows encouraged investors to cover short positions as the lower prices sparked improved export demand. Corn and soyabean futures also ticked higher in a short-covering bounce from four-year lows, though good weather speeding the harvest of expected record crops in the US Midwest anchored prices.
"We've exhausted the selling, at least in the short term," said Shawn McCambridge, grains analyst with Jefferies Bache. "For the wheat, we are starting to see some demand develop at these price levels. And you've got the managed money accounts at near record short positions right now." But abundant global wheat supplies and expectations for stiff export market competition could limit further advances in prices.
December soft red winter wheat futures gained 7 cents, or 1.5 percent, to $4.83 a bushel by 10:00 am CDT (1500 GMT) after hitting a four-year, front-month low of $4.69-1/2 on Monday. December hard red winter wheat added 7-1/4 cents, or 1.3 percent, to $5.69-1/4 a bushel after sinking to a four-year low of $5.53-1/2 a day earlier. December corn gained 2-1/2 cents, or 0.8 percent, to $3.28 a bushel after notching a fresh four-year low of $3.24-3/4 earlier in the session.
November soyabeans rose 3-3/4 cents, or 0.4 percent, to $9.40 a bushel in a bounce from Tuesday's four-year low of $9.31. Only light showers were forecast this week in the US Midwest, which should allow farmers to make rapid harvest progress, the Commodity Weather Group said.
Comments
Comments are closed.