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Markets

Soybeans rise 1.2pc on strong US exports, weaker dollar

SINGAPORE: Chicago soybeans rose 1.
Published Updated

imageSINGAPORE: Chicago soybeans rose 1.2 percent on Monday and hit their highest since July, buoyed by strong US weekly exports and a weaker dollar.

Corn gained about half-a-percent and wheat edged up on the back of the gains in soybeans, although abundant global grain supplies kept a lid on prices.

The Chicago Board of Trade's most-active soybean contract had risen 1.2 percent to $10.58 a bushel by 0320 GMT. That was near the session-high of $10.59-1/2 a bushel, its strongest since July 19.

Soybeans have risen for seven consecutive sessions.

Corn gained 0.4 percent to $3.50-1/2 a bushel and wheat added 0.1 percent to $4.19-3/4 a bushel.

The US Department of Agriculture reported weekly US export sales of soybeans at nearly 1.9 million tonnes, above trade expectations ranging from 1.2 million to 1.5 million tonnes.

US wheat export sales were pegged at 712,400 tonnes, topping trade estimates ranging from 350,000 to 550,000 tonnes.

In addition to strong demand, higher mandates for biofuel production underpinned prices.

"Oilseed markets continue to draw support from the higher US 2017 advanced biofuel targets," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.

"Soybeans got an additional boost from a big week of US sales - largely destined for China."

Weakness in the US dollar, which will make commodities priced in the greenback attractive for importers holding other currencies, also lent support.

The dollar pulled further back from near 14-year highs as investors braced for upcoming events that could at least temporarily knock the greenback's bull run off course.

For the wheat market, showers forecast in the week ahead in the US Delta region could ease drought conditions affecting soft red winter wheat, analysts said.

The International Grains Council on Thursday raised its forecasts for world corn and wheat production in 2016/17 to record highs, projecting this would also push grain stocks to their highest-ever levels.

Commodity funds were net buyers of CBOT soybean and soymeal futures contracts on Friday and net sellers of corn and wheat.

Copyright Reuters, 2016

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