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GRAINS-Soybeans hit 3-week high on dollar weakness, short-covering
April 24, 2017 / 3:39 AM / 6 months ago

GRAINS-Soybeans hit 3-week high on dollar weakness, short-covering

    * Soybeans hit highest since March 30 at $9.68/bushel
    * Corn, wheat rise 0.8 pct each

 (Adds details, quotes)
    By Naveen Thukral
    SINGAPORE, April 24 (Reuters) - Chicago soybean futures
climbed for a second straight session on Monday to a three-week
high with a weaker dollar and short-covering by investors
driving the market higher.
    Corn and wheat rose as grain markets recouped last session's
decline, although improving U.S. weather and ample world
supplies kept a lid on prices.
    The most-active soybean contract on the Chicago Board Of
Trade was up 0.6 percent at $9.66-3/4 a bushel. Earlier in
the session, it climbed to $9.68 a bushel, its highest since
March 30. 
    Corn advanced 0.8 percent to $3.66-1/2 a bushel,
having closed down 0.1 percent in the previous session. Wheat
 gained 0.8 percent to $4.24-1/4 a bushel after declining
0.2 percent on Friday.
    "Today's trade is driven mainly by dollar weakness," said
one agricultural commodities analyst. 
    "The focus is on U.S. planting. We also have speculators
holding large net short positions and that has left the market
vulnerable to short-covering."
    Large speculators increased their net short positions in
CBOT corn futures in the week to April 18, regulatory data
released on Friday showed. 
    The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that non-commercial
traders, a category that includes hedge funds, increased their
net short positions in CBOT wheat and soybeans.
    But on Friday, funds were net sellers of wheat and corn
contracts, while they were net buyers of soybeans, soymeal and
soyoil.
    The euro scaled five-month highs against the dollar in early
Asian trading on Monday after the centrist candidate swept to
victory in the first round of the French presidential election,
reducing the risk of an anti-establishment shock in the final
round.
    A weaker dollar makes the greenback-priced U.S. commodities
cheaper for foreign buyers.
    While corn is likely to face pressure as U.S. planting
weather improves while rains in the Plains are expected to
benefit the hard red winter wheat crop. 
    Statistics Canada pegged the country's all-wheat area at
23.2 million acres, down 0.1 percent from last year. The
estimate was bigger than what traders and analysts expected.
Canola seedings were forecast at a record 22.4 million acres.
    Farming agency FranceAgriMer said on Friday that 85 percent
of the French soft wheat crop was good to excellent in the week
to April 17, down from 89 percent a week earlier in the second
successive weekly decline.
    
 Grains prices at 0313 GMT
 Contract    Last    Change  Pct chg  Two-day chg  MA 30   RSI
 CBOT wheat  424.25  3.25    +0.77%   +4.43%       425.57  32
 CBOT corn   366.50  2.75    +0.76%   +2.45%       362.37  44
 CBOT soy    966.75  6.00    +0.62%   +2.11%       966.53  59
 CBOT rice   9.82    $0.05   +0.51%   -0.30%       $9.95   31
 WTI crude   49.85   $0.23   +0.46%   -0.84%       $50.09  34
 Currencies                                                
 Euro/dlr    $1.084  $0.012  +1.09%   +1.20%               
 USD/AUD     0.7555  0.001   +0.17%   +0.39%               
 Most active contracts
 Wheat, corn and soy US cents/bushel. Rice: USD per
 hundredweight
 RSI 14, exponential
    

 (Reporting by Naveen Thukral; Editing by Subhranshu Sahu)
  

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