Chicago agricultural commodities rose across the board Monday as funds started to make a short covering ahead of the U.S. Department of Agriculture (USDA)'s releases of its October Crop report Friday.
The most active corn contract for December delivery rose 9.25 cents, or 2.86 percent, to close at 3.325 dollars per bushel. December wheat gained 5.75 cents, or 1.18 percent, to close at 4. 915 dollars per bushel. November soybean climbed 30 cents, or 3.29 percent, to close at 9.4225 dollars per bushel.
Corn, wheat and soybeans all rallied strongly on fresh demand from funds.
Market fears over a decline in corn and soybean acres planted and harvested also boosted grains market.
U.S. weekly corn exports were at 34.8 million bushels; soybean exports, 35.8 million bushels; and wheat exports, 23.9 million bushels. U.S. soybean exports last week were well above the same period last year and were the largest since May. U.S. corn export is also strong, but market analysts doubt whether U.S. corn exports could sustain amid much cheaper offers from Ukraine and Brazil into the end of this year. As for wheat, the Black Sea and France are offering wheat at cheaper prices.
Weather forecast indicated warmer and drier days in the 7-15 day period, and temperatures in the Plains area are expected to return to above normal in the last half of October. Chances of rain in the Midwest will diminish early next week.
Market analysts hold that corn, wheat and soybeans have not touched their seasonal lows yet, as the world's grain supply is very high.