Soybean futures rose to a six-week high as grain-and-oilseed markets continued to rebound from a government supply report earlier this week.
The U.S. Department of Agriculture increased its forecasts for this year's domestic corn and soybean harvests on Tuesday, prompting a selloff in those markets on concerns about oversupply. But prices have since risen as traders bet that the worst news has come.
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"The market now knows about the bearish influences therefore any supportive news could trigger more bargain hunting," says brokerage Allendale Inc. in a note to clients.
A combination of factors added to Thursday's rallies. A lower dollar and higher crude-oil prices boosted those markets as money flowed into the commodity sector, analysts said. Traders also looked to weather troubles in South America as a potential boon to prices, with excess dryness in Brazil and moisture in Argentina complicating fieldwork there.
Meanwhile, strong global demand for U.S. crops supported corn and soybean prices. The USDA reported weekly export sales of 1.61 million metric tons of soybeans, above expectations. The agency also said Thursday that private exporters sold a further 200,000 tons of oilseed for delivery to China in 2017-18.
Exporters sold 1.05 million tons of corn, at the high end of pre-report estimates, while wheat sales were less than expected.
Most active soybean futures for November delivery rose 1.6% to $9.76 a bushel at the Chicago Board of Trade on Thursday.
CBOT December corn futures rose 0.8% to $3.54 1/4 a bushel. December wheat futures, meanwhile, closed 0.1% lower at $4.43 a bushel after trading higher for much of the session.
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(END) Dow Jones Newswires
September 14, 2017 15:55 ET (19:55 GMT)