December corn futures continued an upward trend Wednesday after reaching the highest close since mid-July on Tuesday. CBOT December corn closed at $3.47 2/5, after reaching a high of $3.49 1/5.
The rally followed Monday's upswing in corn at $3.46 a bushel, lifted by traders who were simultaneously buying corn and selling wheat, according to Reuters.
December corn futures have rallied 22 to 23 cents since last week, when the USDA released its crop production report on Friday, according to Joe Vaclavik, of Standard Grain.
“In the corn market, it appears as if managed money may be interested in exiting that historic large short corn position that they have,” he says.
Mexico bought 1.577 MMT of corn Wednesday, with 1 MMT set to ship this crop year, according to Water Street Solutions.
Soybeans remained under pressure on Wednesday, Vaclavik notes.
“I think a lot of farmers are selling soybeans out of the field ... because the yields have been very, very good and they may have some extra bushels to sell and ... because beans are profitable, whereas corn and wheat not so profitable," Vaclavik says.
“So I think the storage will go to corn and wheat and I think the beans will be sold,” he adds.
CBOT November soybeans closed down 6'6 at $9.55 3/5.