US corn and wheat futures rose for the third straight day on Thursday, with investors who had made bearish bets on the grains scrambling to cover their short positions as the market rallied, traders said. Soyabeans also were firmer, but technical resistance and huge supplies kept the gains in check. Robust demand from ethanol producers and a US government report that showed weekly corn exports were greater than expected also contributed to strength in corn, which hit a five-week high.
"The exports today were on the positive side for corn," said Greg Grow, director of agribusiness at Archer Financial Services. "We are still burning a lot of ethanol. Farmers are willing to move grain on rallies but not on breaks." Chicago Board of Trade March corn futures were up 4-1/2 cents at $3.78-1/4 a bushel at 10:49 am CST (1649 GMT), while March wheat was 7-1/4 cents higher at $4.97.
The front-month corn contract peaked at $3.78-3/4 a bushel, its highest since November 5. Both wheat and corn have risen for five of the last six trading days. The US Agriculture Department early on Thursday reported weekly export sales of corn at 1.095 million tonnes, topping market forecasts ranging from 450,000 to 650,000 tonnes. The wheat market had shrugged off the USDA's raised outlook for world ending stocks that exceeded trade estimates, but bearish supply fundamentals were nonetheless preventing prices from gaining much ground, analysts said. CBOT January soyabeans were up 1-3/4 cents at $8.81-1/2 a bushel. The market hit resistance as it neared its 50-day moving average. Soyabean export sales of 1.454 million bushels also came in above market forecasts.