Chicago corn and wheat further hiked on Friday, as investors expected U.S. would tighten the ending stocks in the upcoming report. Besides, some traders were buying corn and wheat while selling soybeans on a spread, adding to the divergent movement on the grain market.
The most active corn contract for December delivery closed at 6. 515 U.S. dollars per bushel, up 3.5 U.S cents, or 0.5 percent. December wheat added 0.08 cents, or 0.5 percent, to 6.445 dollars per bushel. January soybean lost 18 cents, or 1.45 percent, to 12. 26 dollars per bushel.
Market analysts said that traders see the potential for tightening ending stocks for corn and wheat in the November's Demand/Supply report and also a possible upside adjustment in exports due to higher-than-expected import demand from China.
Meanwhile, some noted short-covering also helped push the wheat price to the highest level since Oct. 12. Besides, the Ukraine's new winter wheat outlook continues to deteriorate due to drought, giving additional push to the wheat's rise. The "Poor" rated crops of recently planted winter wheat jumped to 39 percent as of Oct. 27.
However, the soybeans market suffered correction as traders expected that demand will be revised lower in the coming report due to the weak pace of export sales. Besides, the favorable weather in South America was seen as negative forces.
Some traders also bought corn and wheat while selling soybeans on a spread trading basis, adding to the divergent movement on the grain market.