Soybeans, Corn, Wheat Climb as Dollar Weakens, Crude Advances

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Commodities - Commodity News

Soybean, corn and wheat futures advanced in Chicago as the dollar weakened and crude oil gained, boosting demand for the crops from importers and investors.

Soybeans for July delivery rose 0.5 percent to $9.3675 a bushel on the Chicago Board of Trade at 10:10 a.m. Singapore time. Corn gained 0.3 percent to $3.495 a bushel and wheat advanced 0.5 percent $4.445 a bushel.TheDollar Index, which tracks the value of the greenback against six major currencies including the yen, declined 0.3 percent, ending four days of gains. A weaker dollar makes U.S. supplies cheaper for holders of other currencies.The U.S. dollar has weakened, and that has flown through commodities, saidLuke Mathews, an agricultural commodity strategist at Commonwealth Bank of Australia. Crude oil, a reasonable dictator of agricultural prices at this early stage of the session, rose, pushing grains and oilseeds higher, he said by phone from Sydney.Oil rose for a second day in New York after an industry- funded report showed a fall in the country s crude inventories. Costlier oil raises the appeal of crops used to make biofuels.Any indication that China was going topurchasemore from overseas may help push prices of the grain higher, Mathews said. Still, it s not entirely clear if China s import buying is going to continue, he said.China has boosted purchases, becoming a net importer for the first time in 14 years, after drought cut production and local prices surged. The nation has ordered almost 1 million tons from the U.S. and will probably buy more, Alvaro Cordero, manager of international operations-marketing at the U.S. Grains Council, said May 24.

China has also sold 5.6 million tons of corn from state stockpiles between April 23 and June 1 to cool domestic prices, according to data compiled by Bloomberg. The Chinese government is serious about curbing high domestic prices, Mathews said.

Courtesy: Bloom Berg

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