Chicago soybean futures end higher on outside markets

08:34, March 18, 2010      

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Soybean futures in Chicago Board of Trade closed higher on Wednesday amid encouraging outside markets.

Soybean future for May delivery gained 14 cents to settle at 9. 59 U.S. dollars per bushel. May corn rose 7.25 cents to 3.74 dollars a bushel. May wheat climbed 9 cents to 4.96 dollars per bushel.

Given the oversold market conditions and the scarce of fundamental information, traders said that grains were boosted by a very strong combination of outside markets including strength in equities, a weak dollar and higher crude oil.

Weak dollar provided a bullish tone to the whole commodity futures. Following Tuesday's sharp decline, the dollar index, a gauge measuring the U.S. unit against a trade-weighted basket of six major currencies, slid to a 5-week low of 79.51 shortly before the grain futures' pit trading closed.

Soft dollar usually lowers the U.S. grains' export prices and improves their competitiveness in the international markets.

The crude oil in New York Mercantile Exchange still saw a bullish performance on Wednesday. The benchmark contract for April delivery rallied more than 1 percent and topped 83 dollars a barrel in late session. This is considered as an encouraging factor to grain's gains as corn and soy are important materials to produce alcohol and biodiesel.

There was more discussion in the market about shipping delays at Brazilian ports, but some sources are indicating that the delays are minimal at the port of Santos and well within the normal range at the port of Paranagua. Yesterday's news said that soybean's shipment in Brazil is being delayed because of heavy rain, and this is considered as support to CBOT soys as part of international demand is expected to be shifted to the U.S.

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