Corn, soybeans and wheat futures closed higher on the Chicago Board of Trade (CBOT) Thursday, as tensions were rising in Eastern Ukraine and oil futures were tumbling sharply.
The most active corn contract for December delivery rose 8.5 cents, or 2.25 percent, to close at 3.8625 U.S. dollars per bushel. The most active soybean contract for January delivery rose 5.75 cents, or 0.55 percent, to close at 10.535 dollars per bushel. The most active wheat contract for December delivery rose 11 cents, or 2.03 percent, to close at 5.5375 dollars per bushel.
Corn became the upside leader Thursday as traders worry about tensions rising in Eastern Ukraine. But analysts note that the grain is being exported normally throughout the Black Sea. Offers of Ukraine and Russian corn are well below that of the U.S. Gulf of Mexico.
The weekly ethanol report from the U.S. Energy Information Administration for the week ending Nov. 7 showed that the American production is up 1.8 percent from the prior week. The data were considered to support corn prices.
Grains also obtained support from crude prices plunging Thursday, with light, sweet crude for December going down more than 3 percent on the New York Mercantile Exchange. Analysts say that index funds will be inclined to sell energy holdings and buy grains based on the recent price movement.
Wheat futures rose as lower-than-normal Central U.S. temperatures have caused some concern of winterkill for winter wheat, while soybeans rallied on a railway transportation bottleneck. Association of American Railroads data showed that train speeds are near the lowest since 2010, and monthly carloads of the grain in October were down 5 percent from the last year.