Chicago corn, soybean higher on weather concerns, wheat lower

Chicago Board of Trade (CBOT) agricultural commodities settled mix on Thursday with soybeans, corn rising amid concerns about dry weather in the eastern and southern Midwest and better-than-expected U.S. exports, while wheat keeping falling on the continuous drop in world wheat cash markets.

The most active corn contract for December delivery gained 1.75 cents, or 0.47 percent, to close at 3.75 U.S. dollars per bushel. December wheat delivery lost 4.5 cents, or 0.91 percent, to close at 4.8975 dollars per bushel. November soybeans added 14 cents, or 1.62 percent, to close at 8.79 dollars per bushel.

Chicago soybean futures rallied strongly on Thursday as traders believe soybean prices in U.S. Gulf are back to being the cheapest in the world from September into early 2016 which will likely garner the attention of Chinese buyers.

A drier pattern ahead for the Cental U.S. help the rally in soybeans and corn. The midday weather model remains hot and dry for the Central U.S. starting later this weekend, according to the Global Forecast System. The southern Midwest and Delta are to remain parched with most areas enduring their highest temperatures of the year. For crop areas that are short of moisture, stress will be building heading into mid September.

The U.S. Department of Agriculture (USDA) said Thursday in its weekly export report that for the week ending Aug. 20, the United States witnessed exports of 357,200 metric tons (MT) of wheat, down 41 percent from the previous week and 15 percent from the prior 4-week average.

Corn exports were 820,600 MT, down 11 percent from the previous week and 14 percent from the prior 4-week average, while soybeans export sales were 231,400 MT, down 42 percent from the previous week, but up 1 percent from the prior 4-week average. Analysts said the corn and soybean sales were larger than expected and considered market supportive.