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Chicago grain futures bounce back on weather concerns
Last Updated(Beijing Time):2011-03-25 10:13
The Chicago corn and wheat futures markets on Thursday witnessed a strong rebound on strong demand worldwide for U.S. crop as well as weather concerns. Soybean also eked out a small gain.

The most active corn contract for May delivery climbed 21.5 cents, or 3.2 percent, to close at 7.025 U.S. dollars per bushel. May wheat gained 25.25 cents, or 3.5 percent, to 7.395 dollars per bushel. May soybean rose 3.25 cents, or 0.2 percent, to 13.545 dollars per bushel.

The U.S. Department of Agriculture announced on Thursday that corn sales totaled 895,100 metric tons for the week ended March 17, largely as expected, and wheat sales reached 745,700 metric tons, near the high end of trade expectations, while soybean export sales came in at 264,700 metric tons, which was near the low end of expectations.

Market traders noted that the corn market was underpinned by the robust sales data, while the market was especially encouraged by a reported 221,700 tons sold to Japan, which assured investors that the grain demand in Japan, the world's largest corn importer, is unlikely to drop even after an earthquake and tsunami damaged some of the nation's ports and disrupted deliveries.

Meanwhile, rumors that China will import a large amount of U.S. corn also helped buoy up corn prices after early selling in soybean pressured the market earlier in the day.

Corn also got support from talk of wet and cold weather in the U.S. Midwest on ideas that the scattering rains may delay fieldwork in the northern half of the region.

Although the International Grain Council announced that world wheat production next season will be higher than estimated a month ago, wheat still managed to end sharply higher on Thursday on renewed concerns over the weather in the southern U.S. winter wheat belt, as traders remained concerned that heavy rains in the southern Delta and Midwest may delay early fieldwork and planting in the southern Delta.

Source:Xinhuanet 
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