Chicago | Reuters — Chicago Board of Trade corn and soybean futures rebounded on Wednesday after tumbling to multi-month lows as fears about a global recession fueled liquidation in commodity markets, analysts said.
Bargain buying helped support prices following recent sell-offs by funds that were seen as overdone, analysts said. Traders remain uncertain about the size of the upcoming U.S. corn and soybean harvests and about the future of crop exports from Ukraine that have been disrupted by Russia’s invasion.
“Until the funds quit selling, everything else is secondary,” said Jim Gerlach, president of brokerage A/C Trading in Indiana.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
Most-active corn futures on the Chicago Board of Trade (CBOT) reached their lowest price since Nov. 30 at $5.66-1/2 a bushel before finishing higher (all figures US$). The contract settled up 6-1/2 cents at $5.85.
Most-active soybeans closed up 6-3/4 cents at $13.22-3/4 a bushel, after hitting their lowest price since Dec. 21.
Soybeans were under pressure from a lower soyoil market, but recovered as crude oil bounced back and soymeal stayed firm, CHS Hedging said.
In wheat, the most-active contract settled down 2-1/2 cents at $8.04-1/2 per bushel, after dropping earlier to its lowest since Feb. 17.
“Going forward the market will watch whether managed funds, with dismal chart action, continue to liquidate longs or opt to halt liquidation,” said Rich Feltes, head of market insights for broker RJ O’Brien.
Traders are also keeping an eye on U.S. crop weather. The U.S. Department of Agriculture, in a daily weather report, said rain showers and thunderstorms from Nebraska to Ohio were greatly benefiting corn and soybean fields.
USDA, in a separate weekly report issued on Tuesday, rated 64 per cent of the corn crop as good to excellent as of Sunday, down three percentage points from the previous week. Analysts surveyed by Reuters on average had expected a two-point decline.
— Reporting for Reuters by Tom Polansek in Chicago; additional reporting by Naveen Thukral and Sybille de La Hamaide.
