Roundup: Chicago agricultural commodities close mixed over the week

CHICAGO, Dec. 30 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures closed mixed over the trading week which ended Friday, with wheat futures edging slightly higher as bitterly cold temperatures inflict lasting damage on wheat crops across North American growing regions.

The most active corn contract for March delivery fell 1.25 cents weekly, or 0.36 percent, to 3.5075 dollars per bushel. March wheat delivery went up 2.25 cent, or 0.53 percent, to 4.27 dollars per bushel. January soybeans added 1.5 cents, or 0.16 percent, to 9.6175 dollars per bushel over the week.

March corn futures sustained support above its 20-day moving average. Managed funds hold a sizeable net short position and price action in the opening weeks of 2018 will hinge largely upon weather in Argentina and Brazil.

Large moisture deficits persist in Argentina, and recent one-off rain events will do little to change this trend. Evidence is mounting to suggest yield there could be upwards of 10-12 percent below trend without a major weather pattern shift in early January.

The U.S. wheat futures rallied by varying degrees. Funds near record short position last week was cited along with winterkill concern in the U.S. Plains.

Analysts mentioned that interior hard red wheat basis is rising and since the beginning of December as U.S. export sales have been well above the pace needed to meet the U.S. Department of Agriculture's annual forecast.

Soybeans were on both sides of unchanged through the week, with neither rallies nor breaks able to get much traction through the holiday shortened week. March soybeans finished slightly higher at the week's end.

Fundamentally, U.S. soybean supplies are known to be record large, and funds are holding the largest end of year net short position on record. What is unknown is the South American weather through the most important part of the growing cycle in a La Nina year.

Managed money is heavily short in the soybean market, and traders caution against staying bearish soybeans below 9.50 dollars per bushel. Latest weather forecast argues that there will be dryness issues in both Argentina and Brazil that should offer rally opportunities. Enditem