Back to Main Morning Report: Wheat Contracts Bounce

• Published: 2010-02-09 18:39:04

  There has been some upward market activity ahead of tomorrow evening’s USDA supply and demand reports. The report is expected to be positive for soybeans and corn, and this coupled with higher crude oil values, saw commodities strengthen.
  Soybeans rose to 1.5week highs yesterday. March CBOT contracts closed at 930USc/bu an increase of 16c.
  
  Canola moved higher in line with soybeans. Winnipeg March canola found strength in the soybean contract and from overnight strength in European canola. Futures contracts gained $5.40 to close at CA$386/t.
  
  CBOT March corn contracts closed up 4.5c at 356USc/bu. Short covering was seen ahead of Tuesday’s USDA reports, and a weaker $US also gave strength to prices.
  
  Wheat saw the most impressive gains of the day. CBOT March wheat gained 10.75c to close at 484USc/bu. There is some concern over the large net short position held by speculative funds. If the USDA report is negative for wheat, there could be a large decline in prices, similar to the January report.
  

  Tags: Wheat ,  Oilseeds ,  Coarse Grain ,  Grain , 

  

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