Chicago Board of Trade grain futures were sharply higher on Thursday, extending a rally begun Wednesday following the release of bullish US Department of Agriculture crop and stocks reports, traders said. Front-month CBOT corn set a fresh 30-month high amid follow-through buying. Some technicians target $7 to $7.10 as near-term resistance.
The US dollar weakness added to underlying support for corn and soyabeans, as did ongoing concerns that hot and dry weather is stressing crops in Argentina. Wheat was dragged higher along with corn and soyabeans.
CBOT trends at 10:38 am CST (1638 GMT) on Thursday: March wheat up 10 cents at $7.80-1/2 per bushel. Turkey cuts level of US wheat purchased in tender by 20,000 tonnes, buys German wheat instead. Indonesia eyes US wheat over concern at Australian supplies. India to ban exports of wheat products
March corn up 17 cents at $6.48 per bushel. Showers early next week in Argentina should provide some relief from the dryness that is expected to continue through the balance of this week. Overall satisfactory crop weather in Brazil. March soyabeans up 14 cents at $14.29 per bushel. Spillover support from the bullish crop and stocks numbers released by the USDA on Wednesday and on concerns about dryness and heat in Argentina that is stressing the crop.