Chicago wheat, soybean, corn rally strongly on lower U.S. yield forecast

Chicago Board of Trade (CBOT) grain futures strongly rallied to start the week on fund buying as traders expected a further cut in U.S. corn and soybean yields by the U.S. Department of Agriculture (USDA) next month following a key government report showing reduced supplies of some crops last Friday.

The most active corn contract for December delivery gained 6.5 cents, or 1.68 percent, to close at 3.935 U.S. dollars per bushel. December wheat delivery added 16.25 cents, or 3.35 percent, to close at 5.0125 dollars per bushel. November soybeans rallied 10 cents, or 1.14 percent, to close at 8.8425 dollars per bushel.

Wheat prices sharply rose Monday amid reports that a recent freeze hit top grain-production regions in Brazil, a major importer of wheat, which would lead to a potential fall in the nation's output this season. Analysts believe that a smaller domestic output could lead Brazil to increased demand for foreign supplies of wheat, lifting futures prices for the crop.

The U.S. weekly export inspections released by USDA Monday showed that soybean inspections through the week ending Sept. 10 totaled 370,901 metric tons, up almost 300 percent from the prior week; corn shipments were 711,178 metric tons, down more than 21 percent from the previous week; wheat exports totaled 647,551 metric tons, up nearly 42 percent from the prior week.

Analysts said the wheat and soybean export totals were above trade estimates and considered supportive of futures trading of the two crops. Endit