SINGAPORE: Chicago corn and soybeans inched higher on Monday, with weakness in the US dollar prompting short-covering in agricultural commodities, although gains were curbed by expectations of a bumper US production.
Wheat retreated after climbing earlier in the session to its highest levels in more than one week. The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.7% at $10.34-1/4 a bushel, as of 0254 GMT, and corn edged 0.1% higher to $4.03-3/4 a bushel.
Wheat lost 0.6% to $5.36 a bushel.
The markets were supported by a weaker dollar, which makes greenback-priced commodities cheaper for buyers holding other currencies. Japan’s yen hit mid-January highs against the dollar at Asia open on Monday, as markets extended moves triggered last week after weak US labour data stoked recession worries and expectations of deeper rate cuts by the Fed.
On the fundamental front, French farmers had harvested 67% of this year’s soft wheat crop by July 29, advancing from 41% a week earlier though well behind the usual pace as rain continued to disrupt field work, data from farm office FranceAgriMer showed on Friday.
Moderate rains in Argentina’s farming heartland over the next few days are expected to benefit the 2024/25 wheat crop, which has suffered from dry and cold conditions, the Buenos Aires grain exchange (BdeC) said Thursday.
Speculators anticipating ample grain and oilseed supplies have amassed large net short positions in CBOT soybeans, corn and wheat futures. Large speculators trimmed their net short position in CBOT corn futures in the week ended July 30, regulatory data released on Friday showed. The Commodity Futures Trading Commission’s weekly commitments of traders report also showed that non-commercial.
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