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CBOT crop futures rally amid massive buying

2019-08-09 05:47

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CHICAGO, Aug. 8 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures posted sharp gains on Thursday amid active fund buying and unfavorable weather forecasts.

The most active corn contract for December delivery was up 4.25 cents, or 1.03 percent to 4.1825 U.S. dollars per bushel. September wheat was up 10.25 cents, or 2.1 percent to 4.985 dollars per bushel. November soybeans were up 16.25 cents, or 1.87 percent to 8.83 dollars per bushel.

CBOT brokers estimated that fund bought 6,900 contracts of corn, 4,100 contracts of wheat and 9,900 contracts of soybeans.

"Funds appeared to be getting out of their shorts" ahead of Monday's monthly supply and demand report from the U.S. Department of Agriculture (USDA), said Chicago-based agricultural research firm AgResource.

Dry weather forecasts for the U.S. Midwest have also driven up the crop prices, said market analysts, as late-planted corn and soybeans could suffer further stress.

On Thursday, the USDA released weekly export report, showing relatively better wheat export data but downbeat corn and soybean sales.

For the period of July 26-August 1, U.S. exporters reported net wheat sales of 487,700 metric tons for 2019/20 marketing year, up 27 percent from the previous week and 17 percent from the prior four-week average.

The USDA pegged net corn sales at 42,600 metric tones for 2018/19, down 70 percent from the previous week and 82 percent from the prior four-week average.

Net soybean sales stood at 101,700 metric tons for 2018/19, down 29 percent from the previous week, but up 25 percent from the prior four-week average. Enditem

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