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CHICAGO, Jan. 31 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures close higher on Tuesday as traders firmed their buying after Monday's losses and U.S. Dollars weakens, which makes American agricultural products competitive.
The most active corn contract for March delivery rose 2 cents, or 0.56 percent, to 3.5975 dollars per bushel. March wheat delivery added 6.75 cents, or 1.63 percent, to 4.2075 dollars per bushel. March soybeans rose 1.75 cents, or 0.17 percent, to 10.245 dollars per bushel.
This is partially due to speculative consolidation following Monday's losses, and partially due to a more supportive macro environment. The dollar has extended overnight losses and is perched just above December's low, and crude is up 0.80 dollar per barrel.
The Central US forecast has trended a bit warmer across the Southern and Central Plains through the middle of February, which will keep winterkill stress limited or nonexistent.
Weekly US ethanol production is expected to contract further to 302-307 million gallons, vs. 309 million in the previous week. Ethanol stocks should grow 10-15 million gallons to levels slightly above the same week in 2016.
Both are rather seasonal, but analysts note energy consumption will hit a lull in the next 2-3 months. NASS posted winter wheat conditions from select states on Monday afternoon, and the results are mixed.
In the outside markets, the Brent crude oil market is 0.18 dollar per barrel higher, the U.S. dollar is lower, and the Dow Jones Industrials are 131 points lower.
Jason Roose, U.S. Commodities grain analyst, says that it's a weather market.
"Grains are mixed today, after a weak Monday trade with improved weather in South America vs. good export inspections on corn and soybeans. Slow producer selling will give the grains added support on breaks." Roose said.
