US corn surged to a one-month high while wheat and soyabean futures also rose sharply on Monday as investors bet the US Department of Agriculture will reduce crop production forecasts in reports due in the coming weeks. Traders also exited short positions in nearby Chicago Board of Trade contracts as September corn, wheat and soyabean futures expired at 12:01 pm CDT (1701 GMT).
Corn prices extended gains to their sixth straight session, rising in the wake of the USDA's outlook on Friday for lower corn production and higher soyabean production. Analysts said the USDA could reduce estimates for both corn and soyabean output in the agency's next monthly report due on October 9, The USDA will release quarterly grain stocks totals and wheat production on September 30.
"Corn still has some follow-through buying from the friendly-looking corn report. Attitudes are that, given the variabilities that we still hear from Illinois east, there is potential that the national US yield will inch lower in subsequent reports," EFG Group analyst Tom Fritz said. Most-active CBOT December corn was up 6 cents to $3.93 per bushel, the highest since August 12. Soyabeans for November delivery climbed 10-3/4 cents to $8.85 per bushel as of 12:30 pm CDT, rebounding from a contract low reached in the previous session.
Wheat futures gained as much as 3 percent, largely on short covering as global supplies of wheat, corn and other feed grains remained plentiful, analysts and traders said. CBOT December wheat was 13-3/4 cents higher at $4.98-3/4 per bushel, a roughly two-week peak.
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