Chicago | Reuters — U.S. corn futures gained on Wednesday as slow farmer sales of newly harvested grain firmed cash market prices and triggered short covering and technical buying in the futures market.
Soybeans were steady to higher as a stronger-than-expected U.S. crush pace and robust demand for soyoil eased ongoing worries about dull demand for U.S. soybeans from top importer China.
Wheat drifted lower on ample global supplies and weak demand for U.S. shipments.
Trading remained largely range-bound as the U.S. government shutdown deprived the market of key crop data such as weekly export sales and updated U.S. Department of Agriculture supply and demand projections. As a result, traders are increasingly looking to cash grain markets for direction.
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Cash corn basis values in parts of the Midwest have been improving despite a likely record-large crop as farmers have been storing much of their newly harvested grain.
“The cash prices for corn have been relatively strong. The basis is improving, especially in the eastern part of the United States. That caused some short covering here in futures,” said Craig Turner, a grain broker with StoneX.
Chicago Board of Trade December corn CZ25 settled 3-3/4 cents higher at $4.16-3/4 a bushel. Technical buying as the contract broke through technical chart resistance at its 50-day moving average accelerated gains.
Actively traded November soybeans SX25 ended steady at $10.06-1/2 a bushel, which deferred-month contracts were up as much as 1-1/2 cents.
Soybeans rebounded from earlier declines as the National Oilseed Processors Association reported a much-stronger-than-expected September crush.
Soyoil supplies among NOPA members were also down from a month earlier despite the massive crush, suggesting demand from biofuel makers remains strong. The data gave soyoil futures further support following comments by U.S. President Donald Trump that he is considering terminating imports of Chinese used cooking oil, a competing biofuel feedstock.
CBOT December wheat WZ25 fell 1-1/2 cents to $4.98-3/4 a bushel.
— Additional reporting by Gus Trompiz in Paris and Peter Hobson in Canberra
