Chicago crop futures rise on adverse weather, trade optimism

Chicago, March 15 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures settled higher on Friday, with soybeans gaining double digits on China trade optimism.

Concerns over heavy rain and flooding that hit the U.S. Midwest also supported crop prices, said market watchers.

The most active corn contract for May delivery was up 3 cents, or 0.81 percent to close at 3.7325 dollars per bushel. May wheat was up 9.5 cents, or 2.1 percent, to settle at 3.6225 dollars per bushel. May soybeans were up 10.75 cents, or 1.2 percent, to close at 9.0925 dollars per bushel.

CBOT brokers estimated that funds bought 4,100 contracts of corn, 2,200 contracts of wheat and 3,700 contracts of soybeans.

Chicago soybeans rebounded after latest reports indicated further "substantial progress" on U.S.-China trade talks.

Corn futures extended gains over short covering and adverse weather, amid concerns that the flooding impacting Iowa and several other Midwest states May lead to possible delay of seeding.

Heavy rain and rapidly melting snow have resulted in floods that hit Iowa, Wisconsin, and Nebraska. Iowa Governor Kim Reynolds has issued state disaster declarations for 21 counties due to the massive flooding, which threatened residences and industries, and might disrupt field operations as well.

"(CBOT) wheat is also on the rise as global prices are on the rally and finally we can start to move a little bit higher after the huge sell-off," said Virginia McGathey, a market analyst with McGathey Commodities.

The unfavorable weather can also create logistics problems for wheat, she added.