Grains: CBOT wheat, corn and soy end higher

U.S. wheat futures closed mostly higher on Tuesday, supported by bargain buying after prices fell to their lowest in nearly one month, traders said.

Some buyers stepped into the market after the Chicago Board of Trade December soft red winter wheat contract, the most actively traded, slipped below the low end of its 20-day Bollinger range for the first time since Aug. 14.

CBOT and Kansas City Board of Trade hard red winter wheat contracts closed firm, but MGEX spring wheat ended lower for the fourth session in a row, pressured by the surplus of supplies after a strong U.S. harvest.

Warmer, drier weather in the Black Sea region has eased worries about lost wheat area after a rain-hampered start to the sowing campaign last month.

In Argentina, rain during the past month has provided relief to parched wheat crops ahead of harvesting. A local meteorologist said on Monday that certain areas still need more water.

Chicago Board of Trade corn futures closed higher on Tuesday on short-covering and bargain buying following the market’s fall to a three-year low the previous session, traders said.

Gains were limited by active harvesting of a likely record large U.S. corn crop and persistent reports of bigger-than-expected yields.

Mostly dry weather on Tuesday should allow continued rapid harvest of the U.S. Midwest corn and soybean crops but wet weather at mid-week will bring harvest to a halt, an agricultural meteorologist said on Tuesday.

“There are just a few showers today but widespread rains are expected Wednesday and Thursday,” said Kyle Tapley, meteorologist for MDA Weather Services.

The U.S. corn harvest was 59 percent complete by Sunday, above trade expectations, up from the week ago pace of 39 percent but behind the five-year average of 62 percent.

Speculators boosted their net corn short position to a record high as of the week ended Oct. 8, according to the CFTC.

China is expected to import 5 million tonnes of corn in 2013, an official think-tank said on Tuesday.

South Korea’s largest animal feed maker Nonghyup Feed Inc (NOFI) is seeking up to 70,000 tonnes of corn, 60,000 tonnes of feed wheat and 55,000 tonnes of soybean meal via tenders on Tuesday, South Korean traders said.

Cash basis bids for corn for delivery to the U.S. Gulf were weak on Tuesday.

Spot basis bids for corn were mixed across the U.S. Midwest on Tuesday as a rapid pace of harvest weighed on bids at some locations while slower-than-normal farmers sales supported the basis elsewhere, dealers said.

The RBOB gasoline to ethanol spread was at
0.8 cent per gallon, premium gasoline, unchanged from Monday.

The December corn futures contract was below all key moving averages and the nine-day relative strength index was at
36.

Soybean futures on the Chicago Board of Trade ended higher Tuesday on bargain buying and firm cash markets that signaled an absence of deliveries against the spot November contract later this week, traders said.

The November fell to a near two-week low of $12.68 per bushel before turning up and settling at $12.79, rising above its 200-day moving average of $12.73-3/4.

Soyoil posted the largest percentage gains in the soy complex, with December halting a six-session decline on short-covering and spillover support from palm oil.

Malaysian palm oil futures jumped to a seven-month high on fears that thunderstorms in several crop areas could disrupt supplies of the tropical oil.

Soyoil drew additional support from expectations of robust demand from the biodiesel sector until a U.S. biodiesel tax credit expires at the end of 2013.

Soymeal fell for a third straight session.

USDA said the U.S. soybean harvest was 77 percent complete by Sunday, up from 63 percent a week earlier and matching the five-year average.

Storms across the U.S. Midwest on Wednesday and Thursday should bring the harvest of soybeans and corn to a halt, an agricultural meteorologist said.

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