Chicago Board of Trade agricultural commodities closed up on Monday with wheat rising sharply as dry conditions in parts of U.S. plains prompted investors to cover positions.
The most active corn contract for May delivery rose 3.50 cents, or 0.90 percent, to close at 3.945 U.S. dollars per bushel. Wheat for May delivery gained 22.50 cents, or 4.43 percent, to close at 5.3025 dollars per bushel. May soybeans added 0.50 cents, or 0.05 percent, to close at 9.6775 dollars per bushel.
Analysts said that wheat futures jumped more than 4 percent amid renewed concerns over dryness in the southern U.S. plains, which triggered short covering on Monday.
Weekend rain were sparse in the U.S. central and southern plains, and weather forecast showed not much rainfall in the next 10 days. Dryness threatens seedlings as the crops are emerging from dormancy and requires moisture to grow. This prompted short covering of wheat in the market. The floor brokers estimated that funds have bought 6,000 contracts of wheat before midday, according to the Chicago-based analysis company Agresource.
The traders focused on U.S. department of agriculture's annual planting report due on Tuesday.