Roundup: Chicago agricultural commodities close higher over week

CHICAGO, Jan. 28 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures closed higher over the trading week which ended Jan.26, with wheat futures surging more than 4 percent on technical buying and weakened U.S. dollar.

The most active corn contract for March delivery added 4 cents weekly, or 1.13 percent, to 3.565 dollars per bushel. March wheat delivery went up 18.25 cent, or 4.32 percent, to 4.41 dollars per bushel. March soybeans rose 8.25 cents, or 0.84 percent, to 9.855 dollars per bushel over the week.

March corn rallied to new 7-week highs as meaningful rainfall has failed to appear in Central Argentina, and as weakness in the U.S. dollar has maintained Gulf corn' s position as the world' s cheapest feed grain.

Amid concern over Argentine production, Gulf corn is the world' s cheapest feed grain well into early summer, and weekly export sales will remain elevated in the weeks and months ahead.

Wheat futures rallied sharply amid additional short covering, new multi-year lows in the U.S. dollar, and as it' s difficult to ignore the recent expansion in severe drought conditions across the U.S. Plains. Fundamentally, U.S. and world markets will remain more than adequately supplied, but analysts suggest a modest cut to world stocks, and potentially sizeable cut in the U.S..

Unlike corn, which is benefiting from strong biofuel production, wheat still lacks a demand driver. Assuming normal weather in the Black Sea the U.S.' s share of world trade will remain abysmal, but without better Plains moisture by March 1 a test of 4.75 dollars per bushel, March CME, is possible.

Soybeans traded higher through the week and were again lead by the meal market on concerns for the Argentine crops. Both soybeans and meal traded up to key resistance markers, and eased at the end of the week on profit taking, though both markets were still higher for the week at Friday' s close.

The Argentine weather forecast offers little relief for the driest parts of the country' s soybean crop. Limited rains and warming temps are offered through the first week of February, while longer term climate models show similar trends continuing to the end of the month. Funds are still holding onto a record large net short soybean position for January, of just over 80,000 contracts. Enditem