US soyabean futures rose on Wednesday on technical buying, export demand and spillover strength from crude oil, analysts said. Corn tracked soyabeans higher while wheat was firm in choppy trade. At the Chicago Board of Trade as of 12:32 pm CDT (1732 GMT), November soyabeans were up 6-1/2 cents at $9.79 a bushel. December corn was up 2-3/4 cents at $3.56-1/2 a bushel. December wheat was up 1 cent at $4.21 a bushel.
Soyabeans and soyaoil futures drew support as US crude oil futures hit 15-month highs after the government reported a surprisingly large drop in domestic inventories. Soyaoil is tied to energy markets because of its use as feedstock for biodiesel fuel. Soyabeans drew additional support after the US Department of Agriculture confirmed that private exporters sold 185,000 tonnes of US soyabeans to unknown destinations for delivery in the 2016/17 marketing year. "You are looking at a market that has seen this big rally in crude. Our demand is holding in, and there's no farmer selling," said Jack Scoville, analyst with the Price Futures Group in Chicago.
The CBOT November soyabean contract broke through chart resistance at its 200-day moving average as it bounced back from a weak close one day earlier. CBOT December corn stayed in the same trading it has plied all week, hovering just below its 100-day moving average and a multi-month high set October 14 at $3.58-3/4 a bushel. The firm tone was impressive, given the fact that US farmers are in the thick of the harvest of record-large soyabean and corn crops. Wheat futures were firm but choppy as pressure from plentiful US and global supplies offset support from short-covering. Commodity funds hold a large net short position in CBOT wheat, leaving the market open to periodic short-covering rallies.
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