US MIDDAY: grain futures up

06 Jan, 2011

Grain futures on the Chicago Board of Trade were mixed on Wednesday, with short-covering in soyabeans fuelling the rally from opening levels. Traders said this week's sell-off in soyabeans was overdone given tight US stockpiles. Commercial buying on Tuesday and Wednesday added support.
Gains in soyabeans helped push corn and wheat prices into positive territory. Comments by Goldman Sachs' Jeffery Currie, the firm's global head of commodities, further underpinned soyabeans. Currie said soyabeans are a more attractive investment than wheat.
Long-liquidation, chart-based selling and position-squaring ahead of anticipated 2011 index fund rebalancing dominated trade earlier this week. CBOT trends at 10:30 am CST (1630 GMT) on Wednesday: March wheat up 6-1/4 cents at $7.95-1/2 per bushel. March corn up 5-1/2 cents at $6.14 per bushel. March soyabeans up 24 cents at $13.92-1/2 per bushel.

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