CBOT agricultural futures rally weekly over unfavorable weather conditions
Last Updated: 2018-10-08 10:09 | Xinhua
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Chicago Board of Trade (CBOT) agricultural futures closed sharply higher in the past trading week which ended on Oct. 5, due to extreme wet weather in U.S. Midwest and concern over Russia's wheat exports.

The most active contract for December corn rose 12 cents weekly, or 3.37 percent, to 3.6825 dollars per bushel. December wheat delivery went up 12 cents, or 2.36 percent weekly, to 5.21 dollars per bushel. November soybeans saw a 23.5-cent surge, or 2.78 percent, to 8.69 dollars per bushel.

Soybeans this week traded almost 3 percent higher amid weather forecasts indicating more heavy rainfall in the Midwest. U.S. National Weather Service on Friday issued a series of flood warnings concerning some rivers in Illinois, Iowa and Wisconsin.

Farmers are increasingly concerned about harvest delays and damaged crops, especially beans, which could shatter or sprout.

Fund short-covering late in the week also boosted the values of soybeans. However, many analysts hold bearish view on soybeans amid a big U.S. crop and retaliatory Chinese tariffs.

A prolonged wet weather pattern in the Midwest supported CBOT corn futures as well. Many farmer said they had never seen such a wet September-October period across the area in decades.

Unfavorable weather conditions led to concern over the pace of U.S. corn harvesting, probably well into late October.

Additional support for corn came from fairly good performance in export sales. On Thursday, the U.S. Department of Agriculture released its weekly export sales report, revealing that exporters sold 1.43 million metric tons of corn, versus the trade' s expectations of between 1 and 1.5 million metric tons.

As for CBOT wheat, news from Russia played a leading role in pushing up the prices.

Possible suspension of grain export operations at a number of Russian ports due to phytosanitary concern triggered wheat rallies since the beginning of the week.

Although Russian authorities played down the worry, wheat futures posted double digit weekly gains due to the issue.

Another factor is the drought in Australia, which has affected its wheat production. The U.S. Department of Agriculture may lower Aussie crop by 3 to 4 million tons in next week's report, said analysts with Chicago-based agricultural research firm AgResource.

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