Chicago agricultural commodities close higher on short covering

Chicago Board of Trade (CBOT) wheat futures rose sharply on short covering on Monday as investors worried about dryness in key growing areas.

December wheat delivery advanced 10.00 cents, or 2.05 percent, to close at 4.9675 dollars per bushel. The most active corn contract for December delivery added 7.25 cents, or 1.92 percent, to settle at 3.845 U.S. dollars per bushel. November soybeans gained 7 cents, or 0.81 percent, to close at 8.7425 dollars per bushel.

The weather forecast said that dry weather will stay in Central Plateau mostly in the next couple of days, arousing worries that dryness will hamper the development of wheat there.

Dryness in some key wheat growing areas was also forecast in Russia, where winter wheat planting is underway. Analysts noted that the worries fueled a round of short covering, helping lift wheat futures.

Short covering also supported corn futures as the commodity had fallen for four days in a row last week, according to analysts.

The United States Department of Agriculture said Monday that it registered export sales of 487,680 metric tons of corn for delivery to Mexico, export sales of 240,000 metric tons of soybeans for delivery to unknown destinations during the 2015/2016 marketing year, which began Sept. 1. Endit