GRAINS-Soybean Prices Firm, Rebound From 1-Month Low

(Reuters) – U.S. soybean prices rose on Wednesday, rebounding from a one-month low touched in the previous session, although improving production prospects in South America pressured the market.

The most active soybean futures on the Chicago Board of Trade climbed 0.35 percent to $10.08-3/4 a bushel. They closed down 1.6 percent on Tuesday, after hitting their lowest since Nov. 21 at $10.04 a bushel.

The most active corn futures advanced 0.14 percent to $3.50-3/4, having closed down 0.85 percent in the previous session, when prices touched their weakest since Dec. 5 at m $3.49-1/4.

The most active wheat futures fell 0.12 percent to $4.02-3/4 a bushel. They ended Tuesday down 0.43 percent after marking their lowest since Dec.7 at $4.00-1/4.

Rain expected in Argentina this week has eased concerns about stress to corn and soybean crops in some areas, while forecasters continue to see record harvests in fellow exporter Brazil.

Even so, dryness poses a threat to soy production in southern parts of Argentina’s bread-basket province of Buenos Aires, climate experts said on Tuesday, and could interfere with planting.

Wheat prices remain anchored by record global inventories projected in 2016-17, with U.S. wheat facing additional pressure from a dollar rally that makes the origin less competitive for export.

The dollar held the upper hand against its major rivals on

Wednesday, sitting near a 14-year top against the euro, thanks to bets of higher U.S. growth and a faster pace of interest rate increases under incoming president Donald Trump.

Oil prices nudged higher on Wednesday on expectations of a U.S. crude inventory draw, although trading activity was muted as markets start to wind down ahead of the Christmas weekend.

The Dow and Nasdaq Composite rose to record highs on Tuesday in a rally fueled by optimism about U.S. President-elect Donald Trump’s policies.