Technical buying boosts U.S. corn, wheat, soy
CHICAGO - U.S. corn and wheat futures firmed on Monday on a round of technical buying after prices weakened late last week, traders said. Soybean futures also firmed after hitting their lowest in three weeks. Soy gains were kept in check by an an...
CHICAGO - U.S. corn and wheat futures firmed on Monday on a round of technical buying after prices weakened late last week, traders said.
Soybean futures also firmed after hitting their lowest in three weeks. Soy gains were kept in check by an announcement that Argentina's new president, Mauricio Macri, would cut an export tax on Monday, underlining the prospect of growing supplies from South America.
Price movements were limited as investors looked ahead to this week's Federal Reserve meeting, which could bring the first U.S. interest rate rise in nearly a decade.
At 10:28 a.m. CST (1628 GMT), Chicago Board of Trade wheat futures for March delivery were up 6 cents at $4.96-1/2 a bushel. Technical buyers pushed prices higher after the contract neared the low it hit on Friday.
CBOT March corn gained 3-3/4 cents to $3.79 a bushel. The market found support after the March contract fell to its 30-day moving average.
"Charts are trying to look a little more positive, but fundamentals supporting a rally are lacking," Bryce Knorr, senior editor at Farm Futures Magazine said in a note.
CBOT January soybeans were up 2-3/4 cents at $8.73-1/2 a bushel.
Weakness in the crude oil market weighed on soybeans.
"The soybean market has received a lot of bearish news," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia in Sydney.
Argentina's Macri said he would sign a decree before the end of the day cutting the export tax on soybeans from 35 percent to 30 percent and eliminating export taxes on wheat and corn, in line with his election promises.
Investors are also waiting to see if Macri eases currency controls that could weaken the Argentine peso and potentially give a further spur to exports from the South American country.
Argentina and neighbouring Brazil are both expected to harvest big soybean crops that will contribute to ample global supplies and vie with U.S. supplies for export sales.