Chicago corn, soybeans, wheat rally strongly ahead of USDA report

Chicago Board of Trade (CBOT) agricultural commodities closed sharply higher Monday as funds piled into buying the summer row crops, amid expectations that the U.S. government might lower its crop acreage and yield estimates in a report due out Wednesday.

The most active corn contract for December delivery gained 17. 25 cents, or 4.5 percent, to close at 4.01 U.S. dollars per bushel. December wheat delivery added 13.75 cents, or 2.67 percent, to close at 5.295 dollars per bushel. November soybeans rose 31.25 cents, or 3.24 percent, to close at 9.945 dollars per bushel.

The newswires have been quiet on Monday, but Chicago corn and soybeans rallied strongly as tightening new crop supplies are expected with traders' average guess on 2015/16 yield in U.S. corn and soybean being lower than U.S. official estimates in July.

The U.S. Department of Agriculture (USDA) will release its monthly World Agricultural Supply and Demand Estimates (WASDE) report on Wednesday.

The U.S. weekly export inspections released by USDA Monday showed that soybean inspections through the week ending Aug. 6 totaled 151,964 metric tons, down about 11 percent from the prior week; corn shipments were 804,981 tons, down over 12 percent from the previous week; wheat exports totaled 365,986 tons, up 14 percent from the prior week.

Analysts said corn shipments were a bit weak, while soybeans and wheat were within trade expectations. For their respective crop years to date, exporters have shipped 49,008,168 tons of soybeans, up 14 percent from last year; 41,919,817 tons of corn, down 5 percent; and 3,508,893 tons of wheat, down 23 percent. Endite