By Michael Hirtzer
CHICAGO, Nov 21 (Reuters) – U.S. corn and soybeans edged
higher on Friday, expanding gains from the previous session as
investors covered short positions and domestic end users hiked
bids in efforts to entice sales by farmers.
Futures for each commodity traded in both positive and
negative territory at the Chicago Board of Trade amid steep
gains in the dollar that could curb export demand for U.S.
supplies. Wheat futures were mostly higher while soymeal was
narrowly lower.
CBOT December corn, which had its largest gains of the
month on Thursday, was up 3-1/2 cents to $3.76-3/4 per bushel,
bolstered by strong cash bids, especially from ethanol makers.
“This is one of those years that you have abundant (corn)
supplies on paper but the cash market is going to reflect a
short supply because it’s in the farmers’ hands. If they are not
willing to sell, the cash markets are going to be short,” said
Jefferies Bache analyst Shawn McCambridge.
Ethanol futures were up 4.2 percent, extending gains
after the U.S. Environmental Protection Agency said it will not
finalize biofuel targets for 2014 until next year.
McCambridge and other analysts said the EPA announcement had
little effect on the corn market. “We are on a projected path to
produce just shy of 14 billion gallons (of ethanol), with what
we’ve produced already and expectations of a decent production
through the end of the year.”
Soybeans for January delivery were up 4-3/4 cents at
$10.25-1/4 as of 11:20 a.m. CST (1620 GMT) while CBOT December
wheat climbed 3-1/4 cents to $5.50-1/2.
“It’s hard to be particularly bullish about corn and
soybeans when you are looking at record U.S. production,” said
Sebastien Techer of French consultancy Agritel.
“Export demand may help prevent prices from collapsing but
the U.S. supply balance is very heavy,” he said.
A rise in the dollar index was tied to a sharp drop
in the euro as investors reacted to comments by European
Central Bank chief Mario Draghi on declining inflation
expectations, which also curbed Chicago crop futures.
A strong dollar makes U.S. commodities more expensive
overseas, and has been a drag on U.S. wheat exports this season
in the face of stiff competition from western European and Black
Sea origins.
Last Pct Change Net Change Pvs Close
CORN DEC4 375.75 0.67 2.5 373.25
SOYBEANS JAN5 1025.25 0.47 4.75 1020.5
SOY MEAL DEC4 371.1 0.05 0.2 370.8
SOYBEAN OIL DEC4 32.68 0.03 0.01 32.67
WHEAT SRW DEC4 550.5 0.59 3.25 547.25
ROUGH RICE JAN5 12.53 -0.4 -0.05 12.58
M.WHEAT EUR MAR5 179.5 1.13 2 177.5
LIGHT CRUDE JAN5 75.87 0.03 0.02 75.85
DJ INDU AVERAGE 17813.11 0.53 94.11 17719
BALTIC EXCH DRY 1324 -0.6 -8 1332
US DOLLAR INDEX 88.332 0.85 0.741 87.591
(Additional reporting by Julie Ingwersen in Chicago, Gus
Trompiz in Paris and Naveen Thukral in Singapore; Editing by
William Hardy and James Dalgleish)