Chicago Close: Nearby Corn Adds to Gains

The nearby corn futures contract reached a 7 ½-year high on Wednesday, but soybeans settled lower and wheat mixed.

The bulk of the gains in corn were attributed to continued strength from yesterday’s updated supply-demand estimates from the USDA, which lowered 2020-21 production and ending stocks from December. The drop in production was due to a 3.8 bu/acre yield cut - the largest November to January yield shift in either direction since 1974 or earlier. The March contract closed up 7 ¼ cents at $5.24 ½ but new-crop December slipped 4 ¼ cents to $4.53 ¼.

Soybeans, which put up gains of more than 40 cents on Tuesday following a bullish supply-demand update, reversed as traders took profits. On the other hand, the USDA this morning announced a private export sale of 464,300 tonnes of soybeans to unknown destinations, the largest such sale since June. March beans fell 12 cents to $14.06 ¼ and November dipped a ½ cent to $11.76.

Profit taking also undermined Chicago wheat, although Kansas City and Minneapolis were higher on hopes for improved exports after Russia said it is considering a higher export tax on wheat. March Chicago wheat was down 4 ½ cents at $6.60 ½, March Kansas City added 3 ¼ cents to $6.25 ¾ and March Minneapolis climbed 8 cents to $6.28 ¾.

Live cattle ended mixed today. Lean hogs were mostly lower.

Source: DePutter Publishing Ltd.

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