By Brendan O’Brien
CHICAGO, Nov 29 (Reuters) – Chicago wheat futures climbed more than 2% on Wednesday, extending gains from the previous session as traders covered their short positions ahead of month-end and first notice day for the spot December contract.
Soybeans retreated in early trading before recovering as traders accessed adverse crop weather in Brazil. Corn rose slightly after some contracts earlier hit life-of-contract lows.
The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 finished up 13-3/4 cents at $5.85-3/4 per bushel, the highest closing price since Nov. 15.
“We got month-ending positioning taking place. That’s a big factor in the market today,” said Karl Setzer, partner at Consus Ag Consulting. “A little bit of short-covering in the wheat contract which has been heavily beat down.”
Wheat moved higher after the most-active March contract WH24 set a life-of-contract low on Monday.
Traders and analysts said they expect moderate to heavy deliveries against CBOT December wheat futures on Thursday, the first notice day, reflecting soft cash markets, weak demand and ample supplies.
Meanwhile, CBOT corn Cv1 settled 2-1/4 cents higher at $4.75-3/4 a bushel after touching a contract low of $4.70-1/2.
Soybeans Sv1 rose 1/2 cent to close at $13.47 per bushel as drought in Brazil loomed over production in the top exporting nation, despite recent rains and more rain in the forecast.
“Brazil isn’t running out of soybeans,” Setzer said, noting that the crop in Brazil is still likely will be larger than last year and production in Argentina may offset Brazil’s potential crop production troubles. “It’s just kind of a risk-off type day more than anything.”
In addition, there was talk on Tuesday of China buying more soybeans from private U.S. exporters, Setzer said. That ultimately did not materialize on Wednesday, putting pressure on the market, he said.
(Additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris; Editing by Marguerita Choy and Mark Porter)