Back to Main Morning Report: Agricultural Commodites Beat The Odds

• Published: 2010-02-05 20:58:10

  Outside markets were lower overnight. Gold, crude oil and equities were lower, however ag commodities managed to record some gains. The idea that yesterday’s losses were oversold has leant support to wheat, corn and soybeans.
  
  Soybeans were stronger in a last session bounce. The market finished at session highs with March CBOT contracts gaining 6c to close at 914USc/bu. Buying came from technical signals and the announcement by the Environmental Protection Agency of new mandates on biofuel.
  
  Canola contracts were also higher. Gains were limited by an early weakness in soybeans, however canola managed to gain $5.20 in the March Winnipeg contract to close at CA$382/t. Slow farmer selling is supporting the contract.
  
  CBOT wheat markets gained 6.75c on the March contract, closing at 476USc/bu. There is no firm reason for these gains, fundamentals remain weak and a stronger $US should be unsupportive for US wheat exports. It seems that the market simply ran out of sellers.
  
  Corn futures were slightly higher, shaking off earlier losses to close off the bottom trade of the day. March CBOT corn closed at 354USc/bu, up 1c. These results are surprising considering weak outside markets and a strengthening South American crop.
  

  Tags: Coarse Grain ,  Oilseeds ,  Wheat ,  Wheat ,  Coarse Grain ,  Oilseeds , 

  

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