Roundup: Massive fund buying leads to weekly CBOT surge

CHICAGO, April 28 (Xinhua) -- Chicago Board of Trade (CBOT) grain futures closed double digit higher over the trading week which ended April 27, with the wheat prices soaring more than four percent amid massive fund buying.

The most active corn contract for July delivery rose 13 cents, or 3.37 percent weekly, to 3.985 dollars per bushel. July wheat delivery went up 21.25 cents, or 4.45 percent, to 4.985 dollars per bushel. July soybeans were up 16 cents weekly, or 1.54 percent, to 10.5625 dollars per bushel.

CBOT wheat futures posted strong weekly gains as the U.S. Department of Agriculture (USDA) on Thursday released its weekly export sales report, showing that wheat beat trade's expectations with total export volume at 297,200 tons, up noticeably from both the prior week and previous average.

Wheat growing states, such as Kansas, Oklahoma and Texas, have seen limited rainfall for months, which led to bad ratings of crops. Hard red winter wheat production was notably lower than average, with large acres reportedly being abandoned in the western U.S. plains.

The weather impact grabbed the market's attention this week and significantly pushed up wheat prices, just before next week's crop tour. More detailed conditions of wheat crops will be available after the on-spot examination.

Analysts with AgResource company see U.S. and world wheat weather as critical to price direction with a seasonal top likely in the next six weeks.

Soybean and meal markets traded back and forth this week, but a Friday surge of 1.61 percent for July soybeans put them higher at the close.

Soymeal led the late week rally, boosted by export sales to drought-hit Argentina. The CBOT soymeal rally lifted crush spreads, which in turn pulled the soybean market higher.

Although it's bullish for world soymeal amid the Argentine shortfall, there is no shortage of soybeans in Brazil or the United States, added observers.

Meanwhile, expectations among farmers and traders that high-ranking U.S. officials could make a deal next week in Beijing to avoid trade war with China also underpinned soybean prices. But the outcome of the negotiations is still uncertain.

CBOT corn futures recorded a weekly gain of 13 cents with values pushing up against upside resistance at 3.95 U.S. dollars.

With cold weather hanging on well into April across much of the upper Midwest and northern U.S. plains, the 2018 planting season was off to a slower-than-usual start for corn. And this supported the corn prices this week.

Moreover, the 2018 U.S. corn seeding is expected to be down to 88 million acres. Along with increased export demand from Brazil due to dryness, CBOT corn futures might test some level well above 4 dollar per bushel. Enditem