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Chicago agricultural commodities up with weather concerns

Source:Xinhua Published: 2012-7-13 10:48:30

Chicago corn, wheat and soybeans all rose in trading Thursday, as traders once again worried about recent hot and dry weather conditions.

The most active corn contract for December delivery soared 28. 25 cents, or 4.01 percent, to close at 7.3225 dollars per bushel. September wheat sharply rose 20.5 cents, or 2.48 percent, to settle at 8.4675 dollars per bushel. November soybeans gained 6.5 cents, or 0.43 percent, to close at 15.29 dollars per bushel.

Agricultural commodities were all able to override the negative outside market force of a stronger dollar Thursday, instead gaining on weather concerns.

The latest forecasts continue to show extremely high Midwest temperatures and only little rain. As such conditions have already reduced crop yield and quality, weather concerns lent support to corn, wheat and soybeans.

In Iowa, 88 percent of topsoil is currently rated short to very short, compared to the five-year average of only 15 percent rated short to very short. As Iowa is a top producer of corn and soybeans, the two grains gained on the news.

Additionally, wheat was able to push to an 11-month contract high on ideas of smaller global wheat production thanks to poor weather in the Black Sea region. This would help the US wheat crop.

Corn net weekly export sales were estimated at a total of 664, 800 metric ton, which was higher than trade expectations.

Wheat export sales for the week were lower than expectations, totaling only 311,800 metric ton. Weekly export sales for soybeans totaled 759,200 metric tons, which was above expectations.
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