(June 7 2012)
U.S. grain markets staged a mid-week rally, climbing as investors returned to riskier assets and the greenback weakened. Markets overall received a boost today as growing hopes that Europe would steer away from a financial crisis spurred buying.
Chicago Board of Trade corn prices climbed 3.3% o to $5.86-1/4 per bushel, two-week high. Last week corn plunged to a 1-1/2 year low over expectations for a record crop this fall.
Soybeans advanced 2.7%, their biggest gain in over two months. July soybeans added 36-3/4 cents to $13.86-1/4 per bushel, supported by forecasts for lower production in Brazil. Also adding support, data showing from the U.S. Department of Agriculture showing China bought 120,000 tonnes of U.S. soybeans, the second large export sale to the country this week.
Chicago Board Of Trade July wheat was up 11 cents at $6.24-1/4, a rise of 1.8%, with each contract rebounding from declines on Tuesday. Wheat prices have been under pressure as U.S. farmers harvest the winter wheat crop in the southern U.S. Plains.
Raw sugar for September delivery edged up, a modest $0.84 to 19.9 cents a lb. Sugar for October delivery gained 0.61 cent to 19.98 cents a lb. The spread between the July and October contracts dropped 74 percent from Tuesday to 8 cents per lb., indicating a scramble for immediately available material. On Wednesday, s sugar futures finished more than 4% higher as heavy rain in Brazil spurred supply worries.
Cocoa futures for July rose $40 to $2,203 a ton on volume of 23,273 lots, getting a lift from news that Ivory Coast had sold more of its 2012/2013 harvest than expected.