Chicago agricultural commodities keep rising on better export demand

Chicago agricultural commodities kept rising Tuesday on better export demand.

The most active corn contract for December delivery gained 4.5 cents, or 0.61 percent, to close at 7.4325 dollars per bushel. December wheat rose 3.25 cents, or 0.39 percent, to settle at 8.45 dollars per bushel. January soybeans climbed 18 cents, or 1.29 percent, to close at 14.1275 dollars per bushel.

Corn rose sharply on a stronger wheat market and prospects of better export demand, which may push up prices in a long run due to tight domestic supplies.

Meanwhile, some private analysts have begun to cut Argentina's corn production estimate to 22.5 million to 23 million tons, as against the U.S. Department of Agriculture's estimate of 28 million tons, which also supported corn.

Wheat gained strength further Tuesday on the worse-than- expected winter crop condition ratings released Monday, as well as on strong corn and soybean market. The weekly Winter Wheat Conditions report fell below the market expectations by showing that 34 percent of the crop was rated good-excellent, compared to 36 percent last week and 50 percent last year.

The talk that Japan is seeking 134,000 tons of feed wheat for January through February shipment has also added a bullish tone to wheat market. Some traders believe wheat exports could pick up in 2013 if Argentina and Australia have less wheat to sell.

January soybeans reported a double-digit gain Tuesday on overselling talk which has triggered a round of short covering.

A well-known market analyst has cut soybean productions in Argentina and Brazil overnight, adding to the upward strength of soybeans on the day.

Firm cash market and strong export demand have also supported soybeans.