Chicago Board of Trade corn and soyabean futures firmed on Tuesday on support from strong exports of both commodities following the record US harvest. Wheat futures also were higher, on track for their fourth straight day of gains as traders continued to cover short positions ahead of the year's end. The most-actively traded CBOT wheat contract hit its highest in more than two weeks.
Gains in corn and soybeans were kept in check as the ample supply base was more than able to handle recent demand bumps. "US corn and soya exports continue to run at breakneck paces, with China slurping up all the beans they can handle and most key corn importers taking advantage of cheap US corn, but domestic supplies of both crops will remain robust even with those fast export paces," INTL FCStone said in a research note.
At 10:38 am CST (1638 GMT), CBOT January soyabean futures were up 3-1/4 cents at $10.34-1/4 a bushel. Soyabeans also received support from talk that Chinese environmental regulators have launched a crackdown on soya crushing plants in China's southern province of Guangdong, fuelling concerns about soyameal supplies as stocks dwindle. That could boost demand for US exports.
CBOT March corn was 3 cents higher at $3.63-1/2 a bushel and CBOT March soft red winter wheat was up 2-3/4 cents at $4.20 a bushel. Stiff competition on the wheat market acted as a damper on wheat's string of higher closes. "Buyers have plenty of options as there is too much wheat around," said Phin Ziebell, agribusiness economist at National Australia Bank in Melbourne. "Prices came up a little bit on news of higher demand, but there is no change in the fundamental picture of large supplies. You need a big supply disruption to sustain higher prices."
Early forecasts have projected another big Russian wheat harvest next year, while a first official reading of soft wheat sowings in France on Tuesday estimated that the area would equal an 80-year high of 5.2 million hectares harvested this year. The small adjustments on grain markets were encouraged by a cautious mood among investors ahead of a two-day US Federal Reserve meeting that is widely expected to conclude with a decision to raise interest rates.
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