CHICAGO - Following are U.S. trade expectations for the opening of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CST (1430 GMT) on Wednesday.
NOTE: Thursday is first notice day for deliveries against CBOT January futures contracts.
WHEAT - Up 2 to 3 cents per bushel
Higher on technical buying and end-of-year short-covering following Tuesday's rally from three-week lows.
- Commodity funds hold a large net short position in CBOT wheat, leaving the market vulnerable to bouts of short-covering.
- Bulls note potential crop damage due to flooding in the southern U.S. Midwest soft red wheat belt. However, drier conditions are expected in the next two weeks.
- A forecast plunge in temperatures in parts of Russia could pose risks to winter grains after warm weather in recent weeks reduced snow cover. But frosts are not expected to be severe and will not last long.
- CBOT March soft red winter wheat last up 3 cents at $4.78-3/4 per bushel; K.C. March hard red winter wheat up 2 cents at $4.75-1/4; MGEX March spring wheat up 1-1/4 cents at $4.98-3/4.
CORN - Steady to up 1 cent per bushel
ADVERTISEMENT
Firm tone on technical buying and short-covering a day after most months fell to contract lows. Plentiful global supplies, weak export demand for U.S. stocks and renewed competition from Argentina continue to drag on the market.
- Prices underpinned by a large net short position held by funds, which leaves the market vulnerable to year-end short-covering.
- Argentina on Tuesday removed limits on how much corn and wheat the country's huge farm sector can export, the latest measure aimed at revitalizing agriculture in the grains-producing powerhouse.
- CBOT March corn last up 1 cent at $3.63-1/2 a bushel.
SOYBEANS - Up 3 to 5 cents per bushel
Higher on technical buying, despite forecasts for much-needed rains in parts of Brazil next week including the core center-west soy region. Some note talk of dry conditions persisting in northeast Brazil, including the state of Bahia, a lesser production area.
- Traders monitoring high water on the Mississippi River which has barge traffic to a near standstill.
- Malaysian palm oil futures rose to their highest level in 18 months on concerns year-end monsoon rains and El Nino-related dryness may lower future output.
- CBOT March soybeans last up 3-1/2 cents at $8.69-1/4 a bushel.
