CHICAGO, Oct. 7 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board for the second day on Wednesday, led by wheat.
The most active corn contract for December delivery rose 3.75 cents, or 0.97 percent, to close at 3.8875 U.S. dollars per bushel. December wheat soared 14.75 cents, or 2.49 percent, to settle at 6.075 dollars per bushel. November soybean climbed 7 cents, or 0.67 percent, to close at 10.51 dollars per bushel.
Corn, soybean and wheat all scored new rally highs on active volume and fund buying, said Chicago-based research company AgResource. In the case of wheat, this is the best level for a spot wheat future since 2015.
China booked 8 cargoes of U.S. soybeans for December-January overnight. There will be no offers of new crop soybeans from Brazil until February, AgResource noted. China normally takes 6.5-8.0 million metric tons of soybeans in January.
U.S. weekly ethanol production rose to 271 million gallons, as against 259 million gallons in the previous week. The 4-percent decline in production is in line with the U.S. Department of Agriculture (USDA) annual forecast. U.S. ethanol stocks fell to 826 million gallons, down 1 million gallons from the prior week and the lowest stock level in over 8 years.
There will be limited rainfall for the next 10 days or maybe longer time, with harvest operations to continue aggressively. No rain is forecast for the Plains with the 11-15 day period. Rain is needed across the Plains to germinate a newly seeded winter wheat crop.
CBOT market volatility will stay elevated for months to come. AgResource holds that the declining U.S. soybean stocks profile for 2020-2021 along with the drought in Southwest Russian has changed the landscape. Funds are holding a record or near record long U.S. agricultural futures position which promises to produce big rallies or big declines leading up into 2021. AgResource suggest clients be prepared for a wild swinging marketplace for weeks to come.