CHICAGO, Nov. 3 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural commodities closed higher over the trading week which ended Nov. 2, as investors turned to short-covering amid expectations for U.S.-China trade talks.
The most active corn contract for December delivery rose 3.5 cents weekly, or 0.95 percent, to 3.7125 dollars per bushel. December wheat delivery was up 3.5 cents, or 0.69 percent, to 5.0875 dollars per bushel. 2019 January soybean was 30 cents higher, or 3.5 percent, to 8.8775 dollars.
CBOT corn futures shrugged off early weakness to end the week higher. Trade relations are front and center, and though planting decisions have largely been made any fringe acres will hinge upon the soybean's premium to corn.
Exporters in South America and Ukraine are aggressive with Free on Board (FOB) offers in November and December. Gulf corn's competition is sizable. U.S. corn export sales over the last three weeks were disappointing.
Record world corn trade suggests the U.S. Agriculture Department (USDA)'s export forecast is valid, but the pace of U.S. sales will ebb and flow.
The U.S. and European wheat ended the week slightly higher. Important wheat news was absent, but contracts in the U.S. continue to flirt with oversold levels and funds maintain a decent net short position in Chicago.
World prices are holding stout with U.S. wheat export sales being better than expected. Russian wheat is no longer the world's cheapest and post the General Authority For Supply Commodities tender, Russian wheat was the most expensive high-protein origin. Data still suggest a major shift in demand from the Black Sea to the United States and European Union is underway.
Last week the U.S. sold wheat to Bangladesh, and U.S. wheat will now compete for Egyptian demand moving forward.
Soybeans marked an outside week of trading, with prices grinding lower in the first half of the week and marking strong gains in the last half.
The late week rally unfolded on news that U.S. President Donald Trump and China's President Xi Jinping agreed to meet bilaterally during the upcoming G20 summit in Argentina.
The USDA report showed that as of Tuesday, funds held the largest net short soybean position since January, and news of the upcoming meeting triggered massive short covering.