Markets > Futures

CBOT futures post sharp gains on weather woes, strong exports

CHICAGO
2018-03-02 08:38

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Chicago Board of Trade (CBOT) agricultural commodities closed higher on Thursday, boosted by weather woes and strong export performance.

The most active corn contract for May delivery rose 4.25 cents, or 1.11 percent to settle at 3.8625 dollars per bushel. May wheat delivery surged 20.5 cents, or 4.14 percent to close at 5.155 dollars per bushel. May soybeans were up 12.5 cents, or 1.18 percent to settle at 10.68 dollars per bushel.

Funds were back on the buy side as they continued to build long position. CBOT brokers estimated that funds bought 4,300 contracts of wheat, 4,200 contracts of corn, and up to 4,000 contracts of soybeans.

Wheat again posted double-digit gains as funds scrambled to cover the last of their short positions, while traders talked about winter-kill due to the dryness in the U.S. southern plains and the severe cold in Europe.

As a result, CBOT wheat prices rose above five dollar-per-bushel level for the first time since last July.

Meanwhile, the deepening drought in Argentina and stronger-than-expected export sales of U.S. soybeans continued to boost the prices, which reached 13-month highs.

On Thursday, the U.S. Department of Agriculture announced additional soybean sales. Private exporters reported the sales of 246,000 metric tons of soybeans for delivery to China and other destinations.
 
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