Chicago agricultural commodities futures market closes higher on short-covering

Corn, wheat and soybeans closed higher Thursday on short-covering, with wheat seeing a big gain as weather forecast turned to be wet again in key growing areas.

The most active corn contract for July delivery added 4.5 cents, or 1.25 percent, to close at 3.635 U.S. dollars per bushel. Wheat for July delivery gained 13 cents, or 2.55 percent, to close at 5. 2375 dollars per bushel. July soybeans rose 11.25 cents, or 1.20 percent, to close at 9.465 dollars per bushel. Corn, wheat and soybeans all enjoyed a nice rally as the U.S. dollar trades mostly weaker and as funds had been actively covering short positions, said Agresource, a Chicago-based Institute in its daily newsletter.

Floor brokers estimated that funds bought 5,000 contracts of corn, 4,000 contracts of wheat before midday, 5,000 contracts of soybeans, according to Agresource.

Some analysts said that wheat futures witnessed a big gain Thursday because the forecast for the U.S. Plains turned wet again, triggering multiple disease concerns. The weather forecasts said that regular rains will continue passing along the Central Plains, Midwest and some other key wheat growing areas into June 20.

The United States Department of Agriculture said Thursday in its weekly export sales report that for delivery in the week of May 28 in marketing year 2014/2015, wheat saw exports of 406,300 metric tons, down 18 percent from the previous week, but up 12 percent from the prior four-week average. As for the corn, the report said 464,900 metric tons were sold, down 29 percent from the previous week and 31 percent from the prior four-week average, while 130,300 metric tons of soybeans were sold, down 60 percent from the previous week and 42 percent from the prior four-week average, according to the report. Endite