CHICAGO, July 20 (Xinhua) -- Chicago grains carried bullish sentiment into Friday, as traders worried about further crop damage due to the scorching weather forecasts. Soybeans settled at all-time high while corn came close to its record.
The most active corn contract for December delivery sharply rose 17.25 cents, or 2.22 percent, to close at 7.9575 U.S. dollars per bushel, close to its all-time record high of 7.99 dollars. September wheat rose 8.25 cents, or 0.88 percent, to settle at 9. 4325 dollars per bushel. November soybeans gained 34 cents, or 2. 06 percent, to close at the historical record 16.8625 dollars per bushel.
Market analysts said that the grains all continued their recent rises, as U.S. drought conditions worried investors so deeply that agricultural commodities were able to override the negative forces of a sharply higher dollar and heavy losses in the U.S. stock market.
The latest weather forecasts continue to show temperatures in the Western Corn Belt reaching as high as 95 degrees Fahrenheit, and the dry conditions are expected to continue for the next two weeks.
As hot and dry weather conditions have already reduced crop yield and quality, ideas the deterioration would further worsen over the next week sent grain prices up sharply. Traders are all expecting Monday's U.S. Department of Agriculture Crop Conditions Report to show increased crop damages.
Wheat additionally took support from ideas of further wheat crop losses in the Black Sea region, potentially increasing the demand for the U.S. crop.
However, traders continue to monitor developments that could pressure demand for the U.S. corn and soybean crops. Brazilian analysts pegged the country's 2012-2013 soybean production at 82. 29 million tonnes, up 24 percent from the current crop.
Corn, meanwhile, has seen little export sales since the sharp climb in crop prices, indicating a slack demand for the U.S. crop due to high prices.