GRAINS-Chicago Wheat Climbs Over 1 pct on U.S. Dryness, Weaker Dollar
Category: Grains
(Reuters) – Chicago wheat hit its highest in a week on Monday, buoyed by a weaker dollar and concerns over a lack of moisture for the U.S. winter crop.
Corn and soybean prices rose in early Asian trade, although gains were limited by bumper South American supplies.
FUNDAMENTALS
Dry weather for hard red winter wheat growing regions in the United States is supporting wheat prices with forecast rains later this week unlikely to provide much moisture, analysts said.
The dollar stayed on the defensive in Asia with bulls still nursing a grudge after the Federal Reserve’s rate guidance last week proved to be less “hawkish” than many had wagered on.
A weakening U.S. dollar, which makes U.S. commodities more attractive to overseas buyers as well as investors looking for a hedge against inflation, provided some support to grains and oilseeds.
Abundant supplies and the prospects for strong South American harvests of soybeans and corn limited gains.
Argentine corn and soybeans should benefit from high yields brought by good weather, the Buenos Aires Grains Exchange said last week, adding it might increase its soybean harvest estimate.
Workers at Argentina’s biggest agricultural port hub, Rosario, have voted to hold a 24-hour strike on March 30 to demand better wages and an end to dismissals, a union leader said Saturday.
The stoppage will likely affect the shipment of grains and their by-products from global food supplier Argentina, where companies such as Cargill, Bunge and Louis Dreyfus <BG.N > have their own terminals.
Large speculators switched to a net short position in Chicago Board of Trade corn futures in the week to March 14, regulatory data released on Friday showed.
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 in soybeans.
MARKET NEWS
Asian stocks were slightly weaker early on Monday, following Wall Street’s declines and the G20’s decision to drop a pledge to avoid trade protectionism.
