US Wheat and corn move up (24 Feb 2012)
Posted by Labels: Futures Corn, Futures Soybeans, Futures Wheat
US wheat and corn futures rose on Wednesday, finding support after an early drop on technical buying when prices for both commodities hit 50-day moving averages, traders said.
Soyabean futures also rose, pushed higher by a spate of buying late in the session and spillover strength from the gains in corn.
Soyabeans traded lower for much of the day due to concerns that China, the world's top purchaser of soyabeans, may be forced to slow its imports amid signs of strain to the world's second-largest economy, traders said.
Investors were evening up positions, reversing moves made earlier in the week, ahead of the US Agriculture Department's annual Outlook conference on Thursday and Friday.
"It is just a technical bounce from a market that pushed it too far yesterday," said Bob Utterback of Utterback Marketing Services, a brokerage for farmers.
CBOT March corn settled up 8-3/4 cents at $6.38-1/4 a bushel.
Corn futures hit a low of $6.25-3/4, less than 1 cent below the 50-day average, earlier in the session.
CBOT March wheat ended 11-1/2 cents higher at $6.44-1/2 a bushel.
Buying in both corn and wheat accelerated late in the day as prices passed through key resistance points in the chart, traders said.
After finding support near their 50-day moving averages, the benchmark corn and wheat contracts rallied through their 30-day and 100-day moving averages during the session.
"You got position-squaring going into the release of Outlook conference numbers," said Greg Grow director of agribusiness at Archer Financial Services.
"Corn broke hard yesterday and put back on what it lost (today) so it really has not done much.
I think it is just more of a technical trade right now." CBOT March soyabean futures ended up 1-1/4 cents at $12.72-1/4 a bushel.
China's new export orders in February shrank by the most in eight months, a preliminary HSBC business survey shows, defying analysts' expectations of a pick up following the Lunar New Year holidays.
Just last week, a Chinese delegation signed agreements with US grain companies to buy 13.4 million tonnes of US soyabeans valued at $6.7 billion.
That deal was during the visit of China's Vice President Xi Jinping to the United States.
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