Washington | Reuters — U.S. soybean and wheat futures rose on Wednesday, the sixth straight higher close for both commodities, as technical buying and short-covering pulled prices higher after they drifted into negative territory, traders said.
Corn futures closed mostly lower, weighed down by an ample supply base and some technical sales after the benchmark May contract failed to break through Tuesday’s high.
The market largely shrugged off the U.S. Agriculture Department’s monthly supply and demand report, which bumped up the domestic soy stocks outlook by 10 million bushels and left its U.S. corn and soy supply view unchanged.
“It’s a snoozer, no major changes,” said Craig VanDyke, analyst at Top Third Ag Marketing. “It’s more of a dud than anything.”
The government did lower its global stocks outlook for corn, soybeans and wheat by more than expected but supplies were still expected to outstrip demand in the 2015-16 crop year.
The ample global supply base kept the gains in wheat and soybeans in check.
Chicago Board of Trade May soft red winter wheat futures settled three cents higher at $4.68-1/4 a bushel while CBOT May soybeans closed up 1-1/4 cents at $8.85-3/4 a bushel (all figures US$).
Technical support for May soybeans was noted at its 100-day moving average. May wheat found support at its 20-day moving average and settled above its 30-day moving average for the first time since Feb. 3.
Wheat prices have risen 4.6 per cent during the six-session rally while soybean prices have gained 3.2 per cent.
CBOT May corn fell 1 cent to $3.59-1/2 a bushel. The thinly-traded March corn contract, which is in the delivery period, rose 1/4 cent to $3.59 a bushel.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Michael Hirtzer in Chicago and Colin Packham in Sydney.