Chicago agricultural commodities rebounds after Fed statement

Chicago Board of Trade (CBOT) agricultural commodities closed higher on Wednesday with wheat, corn, and soybeans all rebounding on Fed statement.
The most active corn contract for May delivery added 3.75 cents, or 1.01 percent, to close at 3.7475 U.S. dollars per bushel. Wheat for May delivery gained 7.25 cents, or 1.44 percent, to close at 5. 1075 dollars per bushel. May soybeans up 10.50 cents, or 1.10 percent, to close at 9.65 dollars per bushel.
The U.S. Federal Reserve said Wednesday after a two-day meeting that it is unlikely to raise interest rates in April, but dropped the word "patient" from its policy statement.
Analysts said that this means the Fed remained cautious in raising interest rates and not likely to raise rates before September.
The dollar fell against a basket of currencies after the statement, bullish for U.S. commodities, analysts noted.
Bargain buying and short covering strengthened for the gains of the agricultural commodities. For soybean, a round of bargain buying emerged on the market Wednesday as the prices fell near five-month lows on Tuesday, analysts said. The CBOT brokers report in the morning that funds have bought 1,500 contracts of soybeans, according to Chicago-based company Agresource.
According to a report released by the U.S. Energy Information Administration on Wednesday, U.S. weekly ethanol production was 947,000 barrels per day, up 3,000 barrels from last week. While U. S. ethanol stocks fell slightly to 874 million gallons, 15 million gallons down from the prior week. Analysts said that U.S. ethanol stocks have declined for two consecutive weeks, helping to support the corn price.
However, analysts said that dim export prospects continue to hang over the market because of the corn and soybean harvests in Brazil and Argentina.