CHICAGO, June 2 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rose across the board on Friday, led by corn.
The most active corn contract for July delivery soared 16.5 cents, or 2.78 percent, to settle at 6.09 U.S. dollars per bushel. July wheat rose 8.25 cents, or 1.35 percent, to settle at 6.19 dollars per bushel. July soybean gained 23 cents, or 1.73 percent, to settle at 13.525 dollars per bushel.
CBOT grain futures have fluctuated wildly amid the fear of deepening dryness in the Midwest and Delta, as well as on talk of Chinese pricing and limited cash sales from Brazil and Argentina. The Dollar Peso Argentine soybean sales program ended Thursday, and farmers there have virtually halted any new selling amid growing inflationary worry.
CBOT charts are turning, suggesting that additional fund short covering is ahead. Chicago-based research company AgResource maintains that a supply weather bull market may be starting.
The U.S. Department of Agriculture reported that for the week ending May 25, the United States sold 7.4 million bushels of old and 12.3 million bushels of new crop corn, 4.5 million bushels of old crop and 11.1 million bushels of new crop soybeans, and 17.1 million bushels of new crop wheat. There were old crop wheat cancelations of 7.7 million bushels.
Europeans are starting to worry about dryness across Germany, France and Poland. EU crops are starting to show stress and will need rain in the next 10 days to maintain existing high yield potential.
Limited rain is forecast for the Midwest into June 9. Heat is maintained by the drying soils. Confidence in rain is low for the near future.
