CHICAGO, Sept. 27 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Tuesday, with corn and wheat rising and soybean falling.
The most active corn contract for December delivery rose 1.25 cents, or 0.19 percent, to settle at 6.675 U.S. dollars per bushel. December wheat gained 13.5 cents, or 1.57 percent, to settle at 8.715 dollars per bushel. November soybean fell 3.25 cents, or 0.23 percent, to settle at 14.08 dollars per bushel.
Corn and wheat futures were higher on short covering amid the strength of the macro financial markets. But the worry of a deepening U.S./world recession is capping rallies. Additional short covering is expected heading to the U.S. Department of Agriculture September Stocks/Final 2022 Small Grains report, due out on Friday.
Export demand is lagging. Concern is that demand contraction is structural in nature due to China's soybean buying habit and Brazil's record surplus of corn. Chicago-based research company AgResource's mentality of selling strong rallies is intact.
Brazilian farmers are starting to seed new soybean crop more rapidly. The Mississippi River is in decline which is raising barge freight rates.
Hurricane Ian's path is unchanged, and will work across Florida and into the Southeastern Coast over the next 4-5 days, bringing soaking rainfall to the region. The arrival of Ian will work to sustain near complete dryness elsewhere, when temperatures will reach normal/above normal levels by the weekend. Drought expansion continues across the Plains. Corn and soybean harvest will go uninterrupted into mid-October.
