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Chicago agricultural commodities close sharply higher on bargain buying, weather concerns

Xinhua, July 9, 2016 Adjust font size:

Chicago Board of Trade (CBOT) corn, wheat and soybeans settled sharply higher Friday on bargain buying and dry weather concerns.

The most active corn contract for December delivery added 14 cents, or 4.02 percent, to 3.625 dollars per bushel. September wheat delivery rose 9.5 cents, or 2.23 percent, to 4.35 dollars per bushel. November soybeans gained 33 cents, or 3.22 percent, to 10.5775 dollars per bushel.

However, corn, wheat and soybeans declined 1.23 percent, 1.10 percent and 7.01 percent respectively, datas collected by Xinhua reporter showed.

Analysts noted that bargain buying in corn and soybeans after their sharply decline earlier this week supported corn and soybeans on Friday. According to AgResource, the Chicago-based agriculture consultancy, CBOT floor brokers reported that funds have bought 6,200 contracts of corn and 7,200 contracts of soybeans before Midday.

The weather forecast favored hot weather in the U.S. Midwest next week, analysts noted that weather forecast has boosted concerns that hot weather may dent the progress of corn and soybeans, prompting funds technical buying in corn and soybeans ahead of weekend.

Fresh export news also supported soybeans Friday as the U.S. Department of Agriculture (USDA) announced in the morning that private exporters reported export sales of 35,000 tons of soybean oil for delivery to China during the 2015/2016 marketing year.

However, the USDA's weekly export report brought some bearish news. USDA pegged corn net sales till week of June 30 at 369,800 tons for 2015/2016, down 21 percent from the previous week and 61 percent from the prior 4-week average.

USDA rated soybean net sales at 637,300 tons, down 13 percent from the previous week and 14 percent from the prior 4-week average.

As for the wheat, the agency said that wheat sales was 825,300 tons for delivery in marketing year 2016/2017.

Some analysts noted that wheat followed corn and soybeans higher Friday, while technical buying also supported wheat.

CBOT floor brokers reported that funds have bought 6,200 contracts of wheat before Midday Friday, AgResource reported in its daily commentary. Endit