Grain prices rallied as traders closed their bearish positions ahead of a key monthly production report, with wheat jumping almost 4 per cent. While bumper crops in key growing countries have depressed grain prices to multiyear lows, traders were having pre-harvest jitters, and were closing their “short” positions, said analysts. This had resulted in a rush to buy corn, soyabeans and wheat. CBOT December wheat gained 3.6 per cent to $5.09½ a bushel, December corn added 2.9 per cent to $3.42¼ a bushel and soyabeans gained 1.4 per cent to $9.55 a bushel. Steve Nicholson, grains analyst at Rabobank in St Louis, said the profit-taking came ahead of the supply and demand outlook report published by the US Department of Agriculture on Friday. Data showing slower than expected harvest progress from the USDA at the start of the week have added to the jitters. Freezing conditions in some growing areas in the US could affect the quality of corn and soyabeans, said some traders.
Posted on: Wed, 08 Oct 2014 02:16:35 +0000
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