U.S. agricultural futures rise

By Xu Jing

CHICAGO, Nov. 27 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Friday, led by wheat.

The most active corn contract for March delivery rose 6.25 cents, or 1.46 percent, to settle at 4.3375 dollars per bushel. March wheat gained 9.5 cents, or 1.59 percent, to settle at 6.06 dollars per bushel. January soybean climbed 7.75 cents, or 0.65 percent, to close at 11.9175 dollars per bushel.

Agricultural futures rallied on concerning South American weather and stronger than expected U.S. weekly export sales, Chicago-based research company AgResource noted. The tone of the CBOT is bullish with South American weather to garner growing importance during December.

The weekly U.S. Department of Agriculture (USDA) export sales report showed that for the week ending Nov. 20, the United States sold 29.2 million bushels of wheat, 65.6 million bushels of corn and 28.2 million bushels of soybeans. The United States has now sold a record 87 percent of the USDA's 2020-2021 U.S. soybean export estimate. This means that the United States only needs to sell 6.7 million bushels per week to reach the annual USDA forecast.

For respective crop years to date, the United States has sold 663 million bushels of wheat, up 11 percent from last year; a record 1,453 million bushels of corn, up 165 percent; and a record 1,908 million bushels of soybeans, up 106 percent.

China secured 333,000 metric tons of U.S. white wheat for feed purposes this week. Additional Chinese demand for U.S. corn likely looms in the horizon. China's purchases are visible through the USDA's daily reporting system. AgResource predicted that additional Chinese demand would likely produce a broad rally of world feedgrain prices.

Weather forecast is drier than normal for Mato Grosso, Goias, and Mato Grosso Do Sul for another 10 days. Dryness will also impact Southern Argentina and Uruguay. Concern for South American weather stays elevated on declining soil moisture.

New highs in CBOT corn and soybean futures will encourage fresh fund buying. Any fall below 124-125 million metric tons in the Brazilian soybean crop will produce fresh unwanted U.S. soybean export demand, AgResource noted. Corn is rising on the potential for China buying of U.S. corn.

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