Commodities Wednesday, Nov. 26, 1986 : Grain, Soybean Futures Up

Grain and soybean futures prices advanced with surprising vigor in pre-holiday trading Wednesday on the Chicago Board of Trade. Wheat gained as much as 8 cents a bushel and soybeans were up by more than 5 cents.

In some other markets, heating oil was sharply lower, livestock and meat futures were mostly lower.

Traders said the strength in grains and beans caught everyone by surprise.

“There was a lot of short covering (buying to offset previous sales) ahead of the holiday,” said Victor Lespinasse, a trader with Dean Witter Reynolds Inc. “A lot of traders won’t be in on Friday, so this was their last day of the week.”

Corn futures prices were influenced by dwindling expectations of the size of deliveries against the December contract on Friday, the first notice day, Lespinasse said.

Wheat futures were under pressure for the first hour, but came back strongly on the news that 50,000 bushels had been shipped out of deliverable positions in Chicago overnight.