Soybeans set 6-1/2-week high as weaker dollar lifts grains complex

CHICAGO: US soybean futures touched a 6-1/2-week high on Friday, lifted by uneven crop weather in top soy producer Brazil and fresh export demand for US supplies, coupled with a plunge in the dollar that bolstered corn and wheat futures as well.

Chicago Board of Trade (CBOT) January soybean futures settled up 23-1/2 cents at $13.51-3/4 per bushel after reaching $13.55, the contract’s highest price since Sept. 18.

CBOT December corn ended up 7-1/4 cents at $4.77-1/4 a bushel, rallying after a dip to $4.68, a six-week low. And CBOT December wheat finished up 7 cents at $5.72-1/2 a bushel.

All three commodities got a boost after data showed US job growth slowed more than expected in October, underscoring views that the Federal Reserve may be done hiking interest rates. The dollar index hit a six-week low on the news, making US grains and soy more attractive on the world market.

“(The dollar’s break) helps our competitive posture for exports ... That has been something that has been working against us,” said Terry Linn, an analyst with Linn & Associates in Chicago.

Soybeans got another lift as the US Department of Agriculture confirmed private sales of 131,150 metric tons of US soybeans to unknown destinations.

Meanwhile, traders are monitoring erratic crop weather in Brazil, where soybean planting is under way. “We are seeing more vocal concerns about Brazil’s uneven start to the growing season,” Linn said.

Dry conditions have been a concern in portions of leading soy-producing state Mato Grosso, while excessive rains have drenched southern areas. Still, brokerage StoneX raised its forecast of Brazil’s 2023/24 soy crop this week to 165 million metric tons, from the previous forecast of 164.1 million.

Farmers in Argentina received 50-60 millimetres (2-2.4 inches) of rain on Thursday, providing relief to crops, the Rosario grains exchange said. Harvesting is winding down in the United States, slowing the pace of hedge-related selling in CBOT corn and soy futures. Analysts await the USDA’s Nov. 9 monthly supply/demand reports in which the government will release updated US and global crop estimates.