U.S. corn, soy firm on dollar; wheat eases
Source
Posted on
Chicago corn and soybean futures rose on Friday, aided by a weaker dollar. Corn broke a two-day losing streak, while soybeans extended gains due to increased soymeal demand amid concerns over moldy U.S. corn. Wheat futures edged down, reflecting sluggish exports and improved weather conditions. Analysts noted it’s too early to worry about vomitoxin in corn. Strong Chinese soybean purchases also supported prices, while U.S. and French wheat missed out on Egyptian tenders.
SINGAPORE/PARIS, Nov 13 (Reuters) - Chicago corn and soybean futures were higher on Friday, with corn breaking out of a two-day losing streak as a lower dollar gave a boost to commodities priced in the U.S. currency. Corn had slipped earlier, putting it on course for a third straight falling session, before an easing in the dollar helped push it higher.
The dollar slipped on Friday to give up some of its day-earlier gains, partly due to strength in the euro as data showed the euro zone came out of recession in the third quarter. [FRX/]
Soybeans extended gains from the previous session amid reports buyers were favouring soymeal over corn for animal feed because of concerns about mould affecting the U.S. corn crop, though analysts said it was too early to talk about a problem. Chicago wheat futures edged down after fund-and dollar-fuelled gains earlier this week, with sluggish exports underlining heavy fundamentals.
"There is not a lot of supportive news for CBOT wheat, Egypt bought Russian wheat and weather conditions are improving," said Brett Cooper, a trader with MF Global Australia. Grain markets were awaiting fresh direction from weekly U.S.
export data due at 1330 GMT and the next government harvest report on Monday, which is expected to show the soybean harvest nearly done by this Sunday and corn 50 percent finished. WHEAT SUBDUED Chicago Board of Trade December corn added 0.77
percent to $3.93-1/2 a bushel by 1203 GMT. Despite easing in the past two sessions, corn was still on track to register strong weekly gains after a surge at the start of the week.
The November soybean contract , which expires later on Friday, was up 0.79 percent at $9.90 a bushel. Soybeans had benefitted on Thursday from a 4 percent jump in
soymeal after reports that mouldy corn was testing positive for vomitoxin, which can be harmful to livestock if fed to animals in large amounts. Soymeal -- produced after extracting oil from soybeans -- and corn are key ingredients to make feed for poultry, pigs and fish.
Analysts in Asia said it was too early to be alarmed. "The vomitoxin story in corn is a little way off in becoming a genuine concern. We are not yet concerned," said Cooper. Strong soybean purchases by China, the world's top importer, also supported prices, with the USDA confirming China booked another 116,000 tonnes of soybeans for delivery in 2009/10. On wheat markets, CBOT December wheat fell 0.14
percent to $5.31 a bushel while January milling wheat on Euronext was unchanged at 131.75 euros a tonne in very thin volumes.
The subdued tone in wheat trade partly reflected export concerns, with both U.S and French wheat missing out on business in the latest tender held by Egypt, which purchased 295,000 tonnes of Russian wheat for December shipment. [ID:nLC260176] European traders said reports Algeria had seized some French wheat on sanitary grounds was adding to export worries. [ID:nLC561508]
Euronext operators were also holding back after being disconcerted by Thursday's rise in Chicago, which came despite a stronger dollar that typically dents U.S. grains, traders said. "The market is not at all coherent," one Euronext trader
said. "I think people don't want to take positions and risk going in the wrong direction, plus it's Friday."
* Prices as of 1203 GMT
Product Last Change Pct Move End 2008 Ytd Pct
CBOT wheat 531.00 -0.75 -0.14 610.75 -13.06
CBOT corn 393.50 3.00 +0.77 407.00 -3.32
CBOT soybeans 990.00 7.75 +0.79 972.25 1.83
Paris wheat 131.75 0.00 +0.00 137.25 -4.01
Paris maize 134.50 -0.75 -0.55 118.00 13.98
Paris rapeseed 273.75 0.50 +0.18 263.75 3.79
Crude oil 77.25 0.31 +0.40 44.60 73.21
Euro/dlr 1.49 0.01 +0.34 1.49 0.19
*Front month contracts. CBOT contracts in cents per bushels except rice which is in dollars per hundredweight. Paris wheat in euros a tonne and London wheat in pounds per tonne (Writing by Gus Trompiz, editing by Anthony Barker)
Source Link: https://www.reuters.com/article/markets/commodities/u-s-corn-soy-firm-on-dollar-wheat-eases-idUSLD681407/
Recommended for you
