CHICAGO, Jan. 8 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures closed mixed on Friday, with corn and soybean rising and wheat slipping.
The most active corn contract for March delivery rose 2.25 cents, or 0.46 percent, to settle at 4.9625 U.S. dollars per bushel. March wheat lost 3.5 cents, or 0.54 percent, to settle at 6.3875 dollars per bushel. March soybean gained 19.5 cents, or 1.44 percent, to close at 13.7475 dollars per bushel.
CBOT soybean rally has pulled corn and wheat futures higher. The next upside price target is 14.00 dollars for March soybeans and 5.10 dollars for March corn, Chicago-based research company AgResource noted.
This week's strong soybean rally is a lack of selling resting above the market amid the hefty sales position of U.S. and South American farmers. Any cash connected hedge selling in CBOT futures will be limited.
U.S. Department of Agriculture (USDA) announced the sale of 204,000 metric tons of U.S. soybeans to China for 2020-2021 crop year. In total, China has booked 7 to 9 cargoes of U.S. soybeans for July-August so far.
Weather forecast shows farther north with Argentine rainfall early next week. Such rain is not enough to replace lost soil moisture and regular rainfall is required into March. A drier and warmer period follows longer term. Near to below normal rain will fall across Northern and Western Brazil into Jan. 20. Weather in Southern Brazil and Argentine forecast stays concerning.
New Chinese demand for U.S. soybeans can't continue or the United States will run out. AgResource holds that price rationing is needed but not yet occurring. Corn will follow soybean to the upside on record high Chinese corn values. AgResource predicts that CBOT bull will continue, and it is just a question of speed and degree which will be determined by the USDA January Report.