By Ilan Brat
CHICAGO--U.S. corn and soybean futures finished higher on
Thursday, bolstered by better-than-expected export sales and some
traders closing out bets near the end of the month.
Meanwhile, wheat was mostly lower, weighed down by a rise in the
dollar.
Weekly export sales figures from the U.S. Department of
Agriculture aided positive sentiment in general, with a government
report showing net sales for the week ended July 23 were above
analyst forecasts, a sign that a steep drop in prices in recent
weeks has helped gin up foreign demand. Extremely wet weather in
June and early July raised concerns about crop damage and boosted
prices. But the weather has turned drier and overall more benign in
recent weeks, easing those concerns and sharply reducing grain and
soybean prices.
Many traders who bet prices would fall are likely taking profits
and unwinding those bearish "short" bets as the end of the month
nears, leading contracts to rally, analysts said.
Corn also was supported by a relief from selling pressure that
hit it earlier in the week as money managers who had bet its price
would rise offloaded their contracts. Some of those "long" bets
have been cleared from the market, and prices as a result had more
momentum to rise.
Chicago Board of Trade corn futures for September delivery
closed 5 1/2 cents, or 1.5%, higher at $3.73 1/4 a bushel.
Still, gains were capped by a rise in the dollar resulting from
strong U.S. gross domestic product numbers and a statement from the
U.S. Federal Reserve suggesting that interest rates might rise
later this year. A stronger greenback makes U.S. supplies less
affordable for foreign buyers, said Mike Zuzolo, president of
advisory firm Global Commodity Analytics in Atchison, Kan.
"It was a battle back and forth between the strong weekly export
sales and the reaction to the Federal Reserve and GDP numbers
pumping up the dollar," Mr. Zuzolo said.
Wheat, he added, traded higher during the session but ultimately
got battered by the dollar. The WSJ Dollar Index, a measure of the
dollar against a basket of 16 major currencies, was up 0.35% at
88.71. Strength in the greenback makes wheat less competitive on
the world market as it competes against European and Eastern
European and Russian supplies.
CBOT September wheat added 1/4 cent, or 0.1%, at $4.96 1/2 a
bushel. December wheat shed 1 cent to $5.04 1/4 a bushel.
Strong export demand drove soybeans higher. CBOT August soybeans
settled up by 7 1/4 cents, or 0.7%, at $9.90 1/4 a bushel.
Write to Ilan Brat at ilan.brat@wsj.com
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