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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