Chicago wheat, corn, soybeans higher ahead of USDA report

Chicago Board of Trade (CBOT) wheat, corn and soybean futures all closed higher Tuesday as traders adjusted their positions ahead of a U.S. government report on grain stocks due out Thursday.

Chicago wheat led the gains as the most active wheat contract for May delivery gained 5.75 cents, or 1.22 percent, to close at 4.7675 U.S. dollars per bushel. Soybean for May delivery rallied 7 cents, or 0.77 percent, to close at 9.16 dollars per bushel. May corn delivery added 2.5 cents, or 0.67 percent, to close at 3.73 U.S. dollars per bushel.

Analysts said technical buying is the dominate feature at CBOT for the session with fund managers continuing to reduce their net short positions in wheat and corn, while adding to new length in soy futures ahead of Thursday's release of grain stocks by the U.S. Department of Agriculture (USDA).

Concerns about dry weather in the wheat belt of southern U.S. Plains supported Chicago wheat futures Tuesday, sending the prices to 2-week highs.

Soybean prices advanced further for the day as rising worries over drought-induced reductions in rival palm-oil production in Southeast Asia have pushed soy oil prices higher recently.

CBOT grains and soybeans have also pulled upward, amid a weak U.S. dollar, lifting dollar-denominated commodities.

The U.S. Dollar Index, a measure of the dollar against six major currencies, lost more than 0.8 percent after Federal Reserve Chairwoman Janet Yellen stressed that the central bank will take a cautious approach to future rate hikes. Enditem