CHICAGO, Feb. 28 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures close higher on Tuesday with corn futures rising about 3 percent.
Wheat and soybean futures were also higher. Investment by commodity funds at the end of the month and ahead of the U.S. planting season added support, analysts said.
The most active corn contract for May delivery rose 5.5 cent, or 1.49 percent, to 3.7375 dollars per bushel. May wheat delivery rose 5 cents, or 1.14 percent, to 4.4375 dollars per bushel. May soybeans added 13.75 cents, or 1.35 percent, to 10.3575 dollars per bushel.
In the outside markets, the Brent crude oil market is 0.06 dollar per barrel lower, the U.S. dollar is lower, and the Dow Jones Industrials are 30 points lower.
DeAnna Hawthorne-Lahre, StatFutures cofounder and trader, says that the funds are in the market.
"The trade rumors are that big fund buying from overseas is happening in the corn market. And investor managers are getting month-end balance sheets cleaned up," she says.
Scott Shellady, TJM Investment vice president and floor trader, says that the biofuel news is the fuel for the rally, "soybean oil really took off, based upon the biofuel issue. Then the soybean market followed. But for sure, anybody who was short anything was looking to cover."
The wheat market has reluctantly followed the biofuel crops higher, and the market awaits the results of the latest General Authority For Supply Commodities (GASC) tender. The lowest offer is 197 dollars per tonne for 60,000 tonnes of French wheat.