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Chicago agricultural commodities close higher on short-covering

Xinhua, November 19, 2016 Adjust font size:

hicago Board of Trade (CBOT) grains futures closed higher on Friday with wheat futures rising about one percent as dry weather and expectations of a drop in U.S. wheat plantings prompted short-covering ahead of the weekend.

The most active corn contract for December delivery rose 3.5 cents, or 1.02 percent, to 3.455 dollars per bushel. December wheat delivery added 5 cents, or 1.24 percent, to 4.08 dollars per bushel. January soybeans rose 4.25 cents, or 0.43 percent, to 9.9375 dollars per bushel.

Chicago soft red wheat futures led the advance to close up one percent for the week. Corn settled up 1.6 percent, with front-month soybean futures closing one percent up this week.

Analysts said all three grains remained within trading ranges, though gained support when some poorly-timed short bets were exited.

December wheat dipped to a nearly six-week low on Monday but held above contract lows set in August, which is a supportive technical sign. Commodity funds hold a large net short position in CBOT wheat, leaving the market vulnerable to short-covering.

Drought expanded last week in much of the Southeast and Plains states in the U.S., including Oklahoma, Kansas and Colorado, according to the latest weekly U.S. Drought Monitor report, produced by a consortium of climatologists.

Wheat also drew strength this week from expectations that U.S. farmers will plant less of the crop next year because of weak prices and the global glut.

Corn exports in the latest U.S. Department of Agriculture's weekly update on Thursday easily topped analysts' expectations, with wheat and soybean shipments both at the upper end of trade forecasts. Endit