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GRAINS-Corn, wheat rebound on dollar weakness, short-covering
December 29, 2016 / 4:00 AM / 9 months ago

GRAINS-Corn, wheat rebound on dollar weakness, short-covering

* Corn, wheat futures rise after Wednesday's decline
    * Dollar weakness, short-covering support prices

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, Dec 29 (Reuters) - Chicago corn and wheat futures
rebounded on Thursday, recouping some of last session's losses
with prices underpinned by a weaker dollar and short-covering
ahead of the year-end break.
    Soybeans firmed although gains were capped by easing
concerns over the South American crop. 
    The most-active corn futures contract on the Chicago Board
Of Trade rose 0.3 percent to $3.49-1/4 a bushel by 0337
GMT, having closed down 1.9 percent in the previous session.
    Wheat rose 0.4 percent to $4.03-1/4 a bushel and
soybeans added 0.4 percent to $10.20-1/2 a bushel.
    "There is a rebound in grain markets but the pace of
business is slow before the holidays," said Kaname Gokon at
brokerage Okato Shoji in Tokyo.
    "The U.S. dollar is weak against the yen. Currency move is
the key factor in markets today rather than anything else."
    The dollar sagged against the yen early on Thursday as U.S.
yields dropped overnight to two-week lows, but the greenback
managed to hold steady against the euro and pound. 
    A weaker dollar supports commodity prices as it makes
products cheaper for buyers holding other currencies.
    Corn and soybeans had drawn support in recent days because
of worries about dry conditions stressing corn and soybeans in
portions of Argentina and northern Brazil. But some of those
concerns have eased with recent rains.
    The market is closely watching a tender issued by Egypt, the
world's biggest wheat importer, to buy the grain.
    Egypt's General Authority for Supply Commodities set a
tender on Wednesday to buy an unspecified amount of wheat from
global suppliers for shipment from Feb. 1-10.
    Suppliers from the Black Sea region have won most recent
tenders with U.S. wheat failing to win much business.
    Commodity funds were net sellers of CBOT corn, soybean and
wheat futures contracts on Wednesday. 
    
 Grains prices at  0337 GMT
 Contract    Last     Change   Pct chg  Two-day chg  MA 30    RSI
 CBOT wheat  403.25   1.75     +0.44%   +2.48%       411.73   53
 CBOT corn   349.25   1.00     +0.29%   +1.01%       354.44   49
 CBOT soy    1020.50  4.00     +0.39%   +3.19%       1022.75  50
 CBOT rice   9.51     $0.00    +0.00%   +0.64%       $9.84    32
 WTI crude   53.85    -$0.21   -0.39%   +1.57%       $50.05   72
 Currencies                                                   
 Euro/dlr    $1.044   -$0.002  -0.15%   -0.16%                
 USD/AUD     0.7198   0.001    +0.19%   +0.25%                
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
         

 (Reporting by Naveen Thukral; Editing by Christian
Schmollinger)

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