By PJ Huffstutter
CHICAGO, U.S., Dec 1 (Reuters) – Chicago wheat futures rose on Wednesday, recovering some of the heavy losses from the previous session, as investor concerns eased that the omicron variant of the coronavirus could derail the economy world.
* Corn and soybeans also regained ground thanks to end-user purchases, traders said, following a rebound in crude oil and expectations for export business. Soybean meal futures led the oilseed complex on the day.
* “Milling margins (for soybeans) are still in the range of $ 2 to $ 2.50 per bushel, and there is talk that China has returned to the market in search of more soybeans due to this price break,” said Don Roose, president of the agricultural broker US Commodities.
* Reuters could not immediately confirm the existence of new Chinese offers for US soybeans.
* The most active wheat contract on the Chicago Stock Exchange (CBOT) was up 0.44% at $ 7.9075 a bushel at 1740 GMT.
* Chicago soybeans were up 1.31% at $ 12.3325 a bushel, while the most active soybean meal futures for January were up 2.57%. Corn was up 1.06% at $ 5.735 a bushel.
* Grain markets have been volatile in recent days, especially wheat futures, according to traders.
* Wheat has been deemed susceptible to a downside after mutual funds increased their long positions last month during a rally to nine-year highs in Chicago and all-time highs on Euronext.
* Commodity funds were net sellers of wheat, corn, soybean and soybean oil futures contracts Tuesday in Chicago, traders said.
* Wheat markets have exploded in recent weeks as the possibility of further restrictions on Russian exports and the risk of damage to the Australian crop from rains fueled fears of a tight supply of wheat for milling.
* “The technical aspects of the market have broken down, and that is the signal that the funds are in liquidation mode,” said Roose. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore Edited in Spanish by Javier López de Lérida)