U.S. Corn, Soybeans Rise Amid Demand Hopes
26 November 2015 - 12:05AM
Dow Jones News
By Jesse Newman
CHICAGO--U.S. corn and soybeans futures rose Wednesday amid
renewed optimism over demand for some crops and short-covering
ahead of the Thanksgiving holiday.
Meanwhile, wheat fell.
Soybean prices led the gains, advancing as large investors like
hedge funds and others exited bets on lower prices, which boosted
the market. Though prices for the oilseeds spiraled downward since
mid-October, analysts said investors often close out of bearish
bets prior to a pause in trade to minimize their risk in case of a
major political or macroeconomic event.
Speculation that Argentine president-elect Mauricio Macri may
not quickly cut export taxes on crops including soybeans also
buoyed prices, providing hope that foreign buyers still will turn
to the U.S. for soybean supplies. Market participants earlier had
worried that if Argentina's new government reduced export taxes as
promised, growers in that country holding large soybean inventories
would ramp up selling, hindering demand for the U.S. crop.
"It now appears as though Argentina's President Macri will not
be so quick to adjust export taxes," said Karl Setzer, an analyst
with brokerage MaxYield Cooperative in West Bend, Iowa, in an
afternoon note to clients. He added that "there are thoughts this
will keep buyers coming to the U.S. for soybean needs."
Soybean futures for January rose 11 1/2 cents, or 1.3%, to $8.75
1/4 a bushel at the Chicago Board of Trade.
Corn prices edged higher, also bolstered by short covering and
likely strong demand for the crop from ethanol makers last
week.
Analysts said buying in corn and soybean markets had an
exaggerated effect on Wednesday, as trading volumes were light
ahead of the Thanksgiving holiday. Trading in Chicago grain and
oilseed futures is suspended on Thursday, with the market reopening
for a shortened U.S. session on Friday.
CBOT December corn added 1 3/4 cents, or 0.5%, to $3.66 a
bushel.
Wheat prices fell, pressured by improving crop conditions, ample
domestic and world supplies and worries over slow demand for the
U.S. crop.
CBOT December wheat shed 5 cents, or 1%, to $4.79 1/4 a
bushel.
Write to Jesse Newman at jesse.newman@wsj.com
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(END) Dow Jones Newswires
November 25, 2015 18:50 ET (23:50 GMT)
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