By Doug Cameron
The price of U.S. crop futures closed higher on Tuesday, as rising oil prices stoked potential demand for ethanol and drove up corn, reversing declines in the previous session.
Benchmark corn futures rose 1.3% and soybeans added 0.5% on bullish crushing data and export sales, with wheat also ending 1.3% higher after shedding 2.2% on Monday.
With volumes low, the market took much of its direction from the 6% gain in crude prices on renewed hopes oil production will be trimmed to reduce a supply glut.
"News is pretty slow, but the sell-off yesterday seemed to be a little overdone," said Doug Bergman at RCM Alternatives of crop futures markets.
CBOT December corn futures gained steadily through the session and added 4 ¿ cents to end at $3.41 ¿ a bushel at the Chicago Board of Trade.
Wheat futures added 5 cents to settle at $3.99 a bushel, off their session high and just shy of the psychologically-significant $4 mark. Even though the U.S. dollar gained a little ground, normally a poor signal for exports, adverse weather in the southern U.S. provided strength.
U.S. farmers are nearly done collecting what is forecast to be the biggest-ever crop, adding to already ample domestic and global supplies of the grain.
Soybean prices firmed after an industry report flagged October as the third-largest monthly crush on record, with 164.641 million bushels well above the 160.5 million expected by analysts.
CBOT soybeans for January delivery added 5 ¿ cents at $9.89 ¿ a bushel, rallying towards the close.
Write to Doug Cameron at firstname.lastname@example.org
(END) Dow Jones Newswires
November 15, 2016 15:33 ET (20:33 GMT)
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