Chicago Board of Trade (CBOT) agricultural futures closed mixed on Wednesday, with corn and soybean rising and wheat falling slightly.
The most active corn contract for December delivery rose 6 cents, or 1.26 percent, to settle at 4.815 U.S. dollars per bushel. December wheat fell 0.75 cents, or 0.12 percent, to settle at 6.23 dollars per bushel. November soybean gained 18.25 cents, or 1.4 percent, to settle at 13.235 dollars per bushel.
Global agricultural markets were in recovery mode Wednesday with volume still rather tepid. CBOT soybeans maintained a neutral chart-based trend. Major technical healing was needed in wheat and corn. December corn’s major moving averages were clustered around 5.18 to 5.20 dollars and December CBOT wheat’s around 6.85 to 6.90 dollars.
Soybeans remained the bullish leader, and crop condition changes over the next two weeks are critical. Chicago-based research company AgResource expects market volatility to be extended into mid-2024.
The Energy Information Administration (EIA) data showed that U.S. ethanol production in the week ending Aug. 11 were 314 million gallons, as against 301 million gallons in the previous week; U.S. ethanol inventories totaled 984 million gallons, up 23 million gallons from the prior week and adequate to meet near-term demand.
A weather pattern of complete dryness and soaring temperatures lies ahead for the United States, and heat will stay in place across the Central and Eastern Midwest into next Saturday or Sunday. An expansive and abnormally strong high pressure ridge will be anchored aloft the Central Plains and Midwest from Saturday to Friday. The second half of August will be defined by heat and dryness.
