CHICAGO, July 21 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures rallied sharply during the past trading week which ended July 20, as traders expected increasing demand for U.S. supplies.
The most active contract for December corn rose 14.25 cents weekly, or 4.02 percent, to 3.69 dollars per bushel. September wheat delivery went up 19 cents, or 3.82 percent weekly, to 5.16 dollars per bushel. November soybeans were up 30.5 cents, or 3.66 percent, to 8.6475 dollars per bushel.
CBOT futures, especially soybeans, had fallen significantly in the week before last, amid fears of escalating trade tension between the U.S. and China. But a better-than-expected export sales report boosted the downward market.
U.S. corn sales for delivery in the 2017-2018 marketing year that ends on Aug. 31 were reported at 641,000 metric tons, up 59 percent from the previous week and 38 percent from the prior four-week average, according to the U.S. Department of Agriculture (USDA).
Meanwhile, the latest crop progress report indicated that 72 percent of U.S. corn crops are in good/excellent conditions, below the previous week's rating of 75 percent.
On Wednesday, news that U.S. weekly ethanol production was up 3 percent added more support to corn, which is used as raw material for the fuel.
All the factors contributed to the sharp rise of CBOT corn futures.
CBOT wheat futures ended the week almost four percent higher, mainly due to expected fall of world crop yields.
European Union wheat was rallying on declining production in France and Germany, while Russian wheat quality was also falling amid rains for winter wheat. Australia has a dryness problem for its wheat production. Traders now hope that U.S. wheat can increase its world share amid rising demands.
CBOT soybean futures also posted sharp weekly gains, and the rise lasted five sessions in a row, though the prices are still at very low level.
Market observers have noticed the widening spreads between U.S. and Brazil export prices, with Brazilian soybeans being currently priced nearly 24 percent higher than U.S. soybeans. That's probably the key reason that U.S. soybean sales jumped 59 percent week to week to 252,300 metric tons, according to USDA data. Still, that's 22 percent down from the prior four-week average.
USDA this week pegged the soybean crop condition at 69 percent good/excellent, below a week ago of 71 percent, giving additional support to the soybean futures.
AgResource, a Chicago-based agricultural research firm, has predicted a firming price trend of commodities into early 2019.
