By Kirk Maltais 

--Soybeans for January delivery rose 0.9% to $12.28 1/4 a bushel on the Chicago Board of Trade Wednesday, supported in part by hopes improved crude oil prices will provide a boost to soybean oil prices.

--Corn for March delivery rose 0.7% to $5.71 1/2 a bushel.

--Wheat for March delivery rose 0.4% to $7.90 1/2 a bushel.




Finding Support: Soybean futures led the CBOT agricultural complex higher Wednesday, fueled in large part by expectations that the recent fall in soyoil prices--due in part to the selloff in crude--has attracted buyer interest. "The action today suggests that the liquidation is done," said Charlie Sernatinger of ED&F Man Capital. "Soyoil, in particular, looks like it should catch a commercial bid, as the demand structure is hitting on all eight cylinders now." China appears to be increasingly interested in buying U.S. soybean exports, Mr. Sernatinger added.

Lesser Risk: Indications that the Covid-19 variant Omicron isn't as severe as the previous Delta variant caused commodities traders to reverse from Tuesday's heavy selling. "The EU Gov't reports that their quarantined omicron infections are mild with headaches, a tired feeling and modest fever," said AgResource. "This is providing a 'risk return' from several hedge fund managers in their investing mindset this morning."




Christmas Volatility: With volumes expected to turn light as the Christmas holiday draws closer, grain traders are expecting further volatility in trading this month. "We...have the Christmas Holiday that trade will position for which brings thin volume and makes futures much easier to manipulate," said Karl Setzer of AgriVisor. "This can cause exaggerated trade activity from now until we turn the calendar to 2022." Mr. Setzer adds that the upcoming WASDE report for this month may add further stress, although interest in this month's report is expected to be limited. "Only commodity demand is updated this month which tends to decrease trade interest in the data," said Mr. Setzer. "We have seen several surprises from the USDA in reports this year though and cannot rule out anything in this one either."

Shock Susceptibility: World wheat prices could be in for further volatility if any sudden supply shock were to emerge, said Marex Spectron. "Nominal supply trade will continue to decline in December which is in line with the seasonal pattern of the trade," the firm said. "We reiterate that what worries us the most is the abnormally low level of inventory which will not allow the softening of any potential supply or demand shock." Traders have been watching for supply forecasts out of major wheat-exporting countries including the U.S., Canada, Australia and Russia--reacting to any indications of weather hurting production in these countries.

Planting Pains: Record-high costs for fertilizer ingredients like nitrogen and phosphate are expected to continue into the 2022 planting and growing season--which will force farmers to seek higher prices for their crops in order to secure a profit. "While the situation will eventually correct itself, our analysis suggests that high fertilizer costs will persist into the spring 2022 planting season at minimum," CoBank said in a report released Wednesday. "We base this conclusion in part on a recent farmer survey and university study, both of which place the odds of high prices persisting at 70% or above." A La Nina storm system may also exacerbate drought issues in the U.S. and elsewhere.




--The USDA will release its weekly export sales report at 8:30 a.m. ET Thursday.

--The CFTC will release its weekly commitment of traders report at 3:30 p.m. ET Friday.

--The USDA will release its weekly export inspections report at 11 a.m. ET Monday.


Write to Kirk Maltais at


(END) Dow Jones Newswires

December 01, 2021 15:46 ET (20:46 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.