CHICAGO- US corn, soybean and wheat futures rallied, lifted by technical buying and short covering along with spillover support from higher equities and energy markets.
Wheat and corn drew additional support from a weaker dollar and concerns about continued grain shipments from Ukraine amid Russian criticism of a U.N.-brokered export corridor deal.
Grain traders also took positions ahead of a monthly US Department of Agriculture (USDA) supply-and-demand report due on Monday, when the agency is expected to lower its US harvest forecasts, particularly for corn.
“Some people are thinking USDA could come in with their (corn) yield below what the trade estimates are,” said Ted Seifried, chief agriculture strategist for the Zaner Group.
“We’re all in agreement that the yield is going to come down. It’s just a question of how much,” Seifried added.
Chicago Board of Trade December corn futures were up 16-1/2 cents at $6.85 a bushel after holding technical chart support at its 100-day moving average. The contract rose 2.9 percent on the week, a third straight weekly gain, as worries about shrinking yield prospects lifted the market.
