By Jesse Newman 
 

CHICAGO--U.S. corn and soybeans futures rose Wednesday amid renewed optimism over demand for some crops and short-covering ahead of the Thanksgiving holiday.

Meanwhile, wheat fell.

Soybean prices led the gains, advancing as large investors like hedge funds and others exited bets on lower prices, which boosted the market. Though prices for the oilseeds spiraled downward since mid-October, analysts said investors often close out of bearish bets prior to a pause in trade to minimize their risk in case of a major political or macroeconomic event.

Speculation that Argentine president-elect Mauricio Macri may not quickly cut export taxes on crops including soybeans also buoyed prices, providing hope that foreign buyers still will turn to the U.S. for soybean supplies. Market participants earlier had worried that if Argentina's new government reduced export taxes as promised, growers in that country holding large soybean inventories would ramp up selling, hindering demand for the U.S. crop.

"It now appears as though Argentina's President Macri will not be so quick to adjust export taxes," said Karl Setzer, an analyst with brokerage MaxYield Cooperative in West Bend, Iowa, in an afternoon note to clients. He added that "there are thoughts this will keep buyers coming to the U.S. for soybean needs."

Soybean futures for January rose 11 1/2 cents, or 1.3%, to $8.75 1/4 a bushel at the Chicago Board of Trade.

Corn prices edged higher, also bolstered by short covering and likely strong demand for the crop from ethanol makers last week.

Analysts said buying in corn and soybean markets had an exaggerated effect on Wednesday, as trading volumes were light ahead of the Thanksgiving holiday. Trading in Chicago grain and oilseed futures is suspended on Thursday, with the market reopening for a shortened U.S. session on Friday.

CBOT December corn added 1 3/4 cents, or 0.5%, to $3.66 a bushel.

Wheat prices fell, pressured by improving crop conditions, ample domestic and world supplies and worries over slow demand for the U.S. crop.

CBOT December wheat shed 5 cents, or 1%, to $4.79 1/4 a bushel.

Write to Jesse Newman at jesse.newman@wsj.com

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(END) Dow Jones Newswires

November 25, 2015 18:50 ET (23:50 GMT)