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Chicago wheat hikes on dry weather outlook
[August 25, 2011]

Chicago wheat hikes on dry weather outlook

CHICAGO, Aug 25, 2011 (Xinhua via COMTEX) -- Chicago wheat rebounded on Thursday as the dry weather in U.S. Great Plains threatened to dampen the planting of winter crop. Corn and soybeans settled almost unchanged after choppy and two-side trading.

The most active corn contract for December delivery closed at 7. 435 U.S. dollars per bushel, up 0.5 U.S cents, or 0.07 percent.

December wheat lost 10.5 cents, or 1.35 percent, to 7.8775 dollars per bushel. November soybean shed 0.75 cents, or 0.05 percent, to 13.9275 dollars per bushel.

Market analysts said that lack of drought-busting rains for the southern plains' winter wheat areas seemed to be the primary factor to help support Thursday's wheat price.

According to weather forecast, the southern Great Plains may have only a few scattered thundershowers through Aug. 30, with most of the rain coming in northern areas.

Much of southern Kansas, Oklahoma and Texas, the three biggest winter-wheat growers, are experiencing "exceptional" drought, the most severe rating on the U.S. Drought Monitor maintained by the University of Nebraska in Lincoln.

Meanwhile, U.S. Department of Agriculture (USDA) said that, for the week ending on Aug. 18, the net export sales for wheat came in at 347,100 metric tons, which was well below expectations and pressured the sentiment to some extent.

Although corn and soybeans continued to gain strength from the hot and dry weather in the Midwest, the world's demand for U.S.

exports is slowing as prices climb, leaving the closing prices of two products nearly unchanged.

USDA reports showed that the net weekly export sales for corn totaled 536,100 metric tons, which was near the lower end of traders' expectations, and that for soybeans came in at 657,600, below earlier expectations.

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