Chicago agricultural commodities close higher on short-covering, weaker U.S. dollar

Chicago Board of Trade (CBOT) grains futures rebounded Thursday as investors covered short positions and bought at bargain prices after the grains plumbed multi-year lows during eight-day skids on prospects of abundant U.S. and world supplies.

The most active corn contract for December delivery was up 8.25 cents, or 2.61 percent, to 3.2375 dollars per bushel. December wheat delivery rose 6.5 cents, or 1.67 percent, to 3.9475 dollars per bushel. November soybeans rose 0.75 cents, or 0.08 percent, to 9.4375 dollars per bushel.

Corn prices led the gains, rising from a seven-year low posted Wednesday as speculative investors holding bets on falling corn prices bailed out of those positions, which lifted the market.

Investors including commodity fund managers have recently been betting that corn prices will drop as farmers begin harvesting what is projected to be the largest crop in U.S. History.

On Thursday, however, analysts said some investors began shedding bearish corn bets amid speculation that prices have fallen so low that growers will stop selling their grain supplies, which would help shore up the market.

Wheat prices also rebounded after notching a new 10-year low Wednesday. Prices for the grain tumbled this week amid export concerns and federal data showing the U.S. spring wheat harvest was proceeding at an unusually quick clip, with new grain supplies piling on top of already abundant U.S. and world inventories.

A weaker dollar also benefited corn and wheat prices, with the greenback down 0.3% in midday trade. That is supportive for grain prices because it makes agricultural products less expensive for overseas buyers.

The USDA's weekly export sales report showed sales of 107,500 tonnes of old-crop soybeans and 1,476,400 tonnes of new-crop soybeans in the week to Aug. 25, in line with trade expectations. Enditem