Chicago wheat, corn, soybean futures rebound from previous slump

Chicago Board of Trade (CBOT) agricultural commodities futures market closed higher across the board Thursday after a slump in the previous day, as end users extended coverage at cheap prices despite weak U.S. crop sales.

The most active corn contract for December delivery gained 7. 25 cents, or 1.97 percent, to close at 3.7525 U.S. dollars per bushel. September wheat delivery added 11 cents, or 2.23 percent, to close at 5.0325 dollars per bushel. November soybeans rose 17 cents, or 1.87 percent, to close at 9.27 dollars per bushel.

Chicago grain futures recovered some of the previous losses triggered by the U.S. government raising its outlook for the production of U.S. corn and soybeans, global wheat supplies, as investors bought at lower prices despite concerns about Central U. S. rainy weather forecast for next week.

The U.S. Department of Agriculture (USDA) said Thursday in its weekly export report that for the week ending Aug. 6, the country witnessed net sales of 421,600 metric tons of wheat for delivery in the 2015/2016 marketing year, down 50 percent from the previous week and 28 percent from the prior 4-week average.

Corn net sales were 29,200 metric tons for delivery in the 2014/ 2015 marketing season, down noticeably from previous week and 87 percent from the prior 4-week average, while soybeans sales were 96,300 metric tons for the 2014/2015 marketing season, down noticeably from the previous week, but up noticeably from the prior 4-week average, the report said.

AgResource company, a Chicago-based agricultural research institute, wrote in a report that U.S. weekly export sales were largely unexciting. The company added that how much rain falls across the Central U.S. next Wednesday to Friday will be the key to short-term direction.

A wetter pattern lies ahead early next week, and showers will be spread across the Plains and Midwest, according to the Global Forecast System. Follow-up rains are projected across the Northern and Western Corn Belt from Aug. 23-25.