CHICAGO, Jan. 6 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural commodities closed higher over the trading week which ended Jan. 5, apparently due to the frigid cold and dry heat that hit the North and South America respectively.
The most active corn contract for March delivery edged up half cent weekly, or 0.14 percent, to 3.5125 dollars per bushel. March wheat delivery rose 3.75 cents, or 0.87 percent, to 4.3075 dollars per bushel. March soybeans went up 9 cents, or 0.93 percent, to 9.7075 dollars per bushel over the week.
During the first half of the holiday-shortened week, CBOT wheat prices were pushed up 9 cents as severe cold front hit U.S. Midwest and southern plains. Bitterly cold temperatures triggered uncertainty over winter wheat yield potential, as plants without a protective layer of snow could face risks of winterkill, even though the losses cannot be quantified until spring.
When this round of deep freeze started to fade out from the Midwest and southern plains towards the weekend and the weather got warmer, wheat futures settled lower for two consecutive days. Profit-taking also played a role in the price downturn later this week. Still, CBOT wheat managed to close in the positive territory.
With continued dryness across the U.S. plains, a complete lack of snow cover in southern Russia and a weakening U.S. dollar, analysts with the AgResource company see more supportive factors for wheat prices.
The sharp rally of soybeans, almost one-percent rise over the week, was mainly a contribution of the unfavorable situation in Argentina.
Disappointing Argentine crop conditions and dry, hot weather there supported CBOT soybean futures, as Buenos Aries Grain Exchange estimated this week that only 53 percent of the soybean crop can be rated good or excellent with 27 percent of their soybean soil moisture being rated short.
With hedgers are reportedly holding net long, observers believe that soybean market has enough support. Now traders' eyes are on an updated U.S. Department of Agriculture report on stocks, expected to be released next week.
CBOT corn ended the week almost flat. Market analysts see no compelling evidence to support a major bull or bear move in the near term, while saying south American weather will remain critical for corn prices.
