Chicago agricultural commodities expected to trade higher next week on record heat

Chicago Board of Trade (CBOT) grains futures most likely to trade

higher next week on record heat in Midwest U.S and not enough rain in

central U.S. Plains, analysts said.

Soybeans futures are 7-12 cents higher, corn 4-7 cents higher with

wheat called 3-6 cents higher next Monday, investment company AgResource

wrote in its pre-opening market calls report.

Analysts said opening week CBOT calls are sharply higher as the

central US weather forecast is warmer and drier than what was offered

last Friday.

Moreover, the extended forecast maintains a warm and dry flow for the

central Plains and Midwest well into late July. The market will more

aggressively add weather premium into CBOT prices as yield potential

declines.

The United States

Department of Agriculture's Friday commitment of traders report

reflected that managed funds were long 18,000 contracts of wheat

futures, short 46,700 contracts of corn and short 70,200 contracts of

soybeans .

Analysts said, the yield reducing central U.S. weather forecast is

likely to force funds to a flat or net long position by mid July. There

just is not enough rain in the forecast into July 24th with heat in the

Plains and Midwest with the drought in the Dakotas continuing to spread

south and east.