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Chicago Futures Rebound

Posted on: Wednesday, 22 March 2006, 06:00 CST

By Victoria Sizemore Long, The Kansas City Star, Mo.

Mar. 22--Chicago corn and soybean futures closed higher Tuesday in a technical recovery from recent declines.

Chicago wheat also closed higher while Kansas City wheat declined. Kansas City Value Line stock index futures fell.

Corn futures were mixed in early dealings, then turned higher in a technical rebound.

Some support also came from fresh export business after South Korea purchased 220,000 metric tons of U.S. corn.

The corn market recently has been pressured by better growing conditions in Midwest corn regions.

Corn futures fell to fresh two-month lows Monday, and the market recovered some of that loss in Tuesday's trade.

Meteorologists said recent rain in the Midwest boosted spring seeding and prospects for the 2006 corn crop. In the meantime, crop weather remained favorable in Argentina and in Brazil, key corn and soybean competitors of the United States.

Overall ample supplies here and overseas, as well as concern about the spread of bird flu, also continued to hang over the market.

Soybean futures finished slightly higher in a technical recovery from recent declines that took the May soybean contract to a 3½-month low.

But gains were limited by large global stocks of vegetable oils and lackluster U.S. soybean export business.

Wheat futures in Kansas City were pressured largely by recent and continued significant moisture in U.S. winter wheat areas. Some parts of the winter wheat belt have suffered from drought, and the recent moisture from rain and snow should help alleviate stress.

Meteorologists said significant precipitation had fallen over the past few days in the Plains, and more moisture was expected at midweek.

Meanwhile, export business was only routine overnight Monday, with South Korea tendering to buy 9,200 metric tons of U.S. wheat.

To reach Victoria Sizemore Long, call (816) 234-4374 or send e-mail to vlong@kcstar.com .

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Copyright (c) 2006, The Kansas City Star, Mo.

Distributed by Knight Ridder/Tribune Business News.

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Source: The Kansas City Star (Kansas City, Missouri)

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