Chicago Board of Trade (CBOT) grains futures closed higher on Thursday over fund short-covering and poor Canadian wheat crop.

The most active corn contract for December delivery rose 12.25 cents, or 3.55 percent, to 3.5775 dollars per bushel. December wheat delivery gained 4.75 cents, or 1.11 percent,to settle at 4.345 dollars per bushel. November soybeans went up 12 cents,or 1.29 percent, to 9.4525 dollars per bushel.

CBOT brokers reported that funds bought 9,000 contracts of corn, 4,500 contracts of wheat and 6,000 contracts of soybeans.

Analysts contributed the overall rally to short-covering by managed funds after the futures of corn and soybean had posted losses for four consecutive sessions.

According to Canada's August crop report, the 2017 Canadian wheat crop is estimated at 25.5 million metric tons, which will be 20 percent less than the previous year. This pushed the CBOT wheat futures higher.

European wheat also rebounded on Thursday following the rise of prices in Chicago in response to the low estimates for the Canadian wheat crop.