Chicago soybeans, wheat, corn rally on upbeat U.S. sales

Chicago Board of Trade (CBOT) agricultural commodities futures all closed higher Thursday as investors were encouraged by better-than-expected U.S. export sales of wheat, soybeans.

The most active corn contract for December delivery added 5.5 cents, or 1.45 percent, to close at 3.8375 U.S. dollars per bushel. September wheat delivery gained 0.25 cent, or 0.05 percent, to close at 4.965 dollars per bushel. November soybeans rallied 6.75 cents, or 0.72 percent, to close at 9.50 dollars per bushel.

The U.S. Department of Agriculture (USDA) said Thursday in its weekly export report that for the week ending July 23, U.S witnessed net sales of 699,400 metric tons of wheat for delivery in the marketing year 2015/2016, up 39 percent from the previous week and 86 percent from the prior four-week average. Corn net sales were at 364,900 metric tons, up 63 percent from the previous week but down 13 percent from the prior four-week average. Soybeans sales were at 416,700 metric tons, up noticeably from the previous week and from the prior four-week average.

Analysts noted the data show a sign that a steep drop in prices in recent weeks has helped support foreign demand. Extremely wet weather in June and early July raised concerns about crop damage and boosted prices. But the weather has since turned drier and overall more benign in recent weeks, easing those concerns and sharply reducing grain and soybean prices.

The midday weather forecast showed mild and dry weather will persist for another three to four days. Another series of rain events are scheduled across the Eastern Plains and Midwest in mid- August, and this moisture is projected to be more widespread, according to the Global Forecast System model.

"Following recent dryness, this pattern shift will be welcomed, " said AgResource company, a Chicago-based agricultural research institute. Endite