* Soybeans up 1.1 pct, corn gains 0.7 pct, wheat up 0.4 pct
* Weaker dollar underpins commodity prices
* Brazil eyes record crop, weather improves in Argentina
(Adds details, quotes)
By Naveen Thukral
SINGAPORE, Feb 6 Chicago soybeans bounced back
on Monday, rising 1.1 percent as a a weaker dollar supported
prices, although the rapidly advancing harvest of a record
Brazilian crop kept a lid on the market.
Corn gained, snapping two sessions of losses, while wheat
rose with technicals calling for higher prices.
The dollar started the week on the back foot on Monday,
after U.S. data showed a smaller-than-expected rise in wages in
January that reinforced expectations the Federal Reserve will
refrain from raising interest rates next month.
The Chicago Board of Trade most-active soybean contract
climbed 1.1 percent to $10.38-1/4 a bushel by 0307 GMT,
having fallen 1 percent on Friday.
Corn advanced 0.7 percent to $3.67-3/4 a bushel and
wheat rose 0.4 percent to $4.31-3/4 a bushel.
Private analytics firm Informa Economics on Friday forecast
the Brazil soybean harvest at 106.5 million tonnes, up from its
previous estimate of 105 million. Brazilian analysts Safras &
Mercado pegged the crop at 107.09 million tonnes.
Farmers in Brazil are already ahead of their typical harvest
schedule and their progress is expected to curb demand for U.S.
soybeans earlier than usual.
"South American weather forecasts remain largely non
threatening," said Tobin Gorey, director of agricultural
strategy, Commonwealth Bank of Australia.
"Argentina's planting is now finally complete and Brazil's
harvest is progressing at a solid clip. Top grower Mato
Grosso's harvest has surged to 31 percent complete as compared
to 14 percent last year, thanks to the earlier than usual
Wheat may break a resistance at $4.38-1/4 per bushel
and rise towards a range of $4.61 to $4.64-1/2 over the next
four weeks, said Wang Tao, Reuters analyst for commodities and
Still, the market is facing pressure as crop-friendly
weather in the Black Sea region supports expectations of bumper
For corn, there is some support from rising U.S. ethanol
U.S. ethanol producers pumped out the biofuel at a record
pace last week, but higher output belies growing concern in the
industry that policy changes in the United States and China
could upend demand.
Large speculators switched to a net short position in CBOT
corn futures in the week to Jan. 31, regulatory data released on
The Commodity Futures Trading Commission's weekly
commitments of traders report also showed that noncommercial
traders, a category that includes hedge funds, increased their
net short position in CBOT wheat and cut their net long position
Grains prices at 0307 GMT
Contract Last Change Pct chg Two-day chg MA 30 RSI
CBOT wheat 431.75 1.50 +0.35% -0.63% 420.90 59
CBOT corn 367.75 2.50 +0.68% +0.07% 360.10 60
CBOT soy 1038.25 11.25 +1.10% +0.10% 1031.13 49
CBOT rice 9.58 $0.04 +0.37% +0.47% $9.70 41
WTI crude 53.91 $0.08 +0.15% +0.69% $52.96 60
Euro/dlr $1.078 $0.000 -0.01% +0.20%
USD/AUD 0.7659 -0.002 -0.31% +0.05%
Most active contracts
Wheat, corn and soy US cents/bushel. Rice: USD per
RSI 14, exponential
(Reporting by Naveen Thukral; Editing by Richard Pullin)