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Soybeans rallies more than 1.5 pct, hit near two-week high

Soybeans rallies more than 1.5 pct, hit near two-week highSYDNEY: US soybean futures rose more than 1.5 percent on Monday to a their highest in nearly two weeks as a fall in the dollar helped to lift commodity prices.

Wheat rose nearly 2 percent after two straight sessions of falls. Corn futures rose 1 percent.

The most active soybean futures contract on the Chicago Board Of Trade was up 1.6 percent at $9.88-1/2 a bushel as of 0357 GMT, just shy of a session-high of $10.00. This is the highest since Jan. 31, and follows a 0.5 percent drop on Friday.

“The weaker dollar will have some people re-evaluating the potential demand for US supplies,” said a Melbourne-based trader who declined to be named as he is not authorised to talk to the media.

Weakness in the greenback makes dollar-denominated commodities cheaper for those holding other currencies, and can spark purchases from large buyers such as China. This may have traders and investors re-calculating the outlook for US soybean exports.

The US Department of Agriculture (USDA) on Friday raised its forecast for US 2017/18 soybean end-stocks, reflecting an export pace that is so far slower-than-expected.

Soybeans gains came despite rains across Argentina’s crop belt easing fears of potential production losses.

The most active wheat futures climbed 1.4 percent to $4.56-3/4 a bushel, having closed down 1.6 percent on Friday.

The USDA last week lowered its US wheat export forecast for the 2017/18 marketing year.

The most active corn futures gained 1.1 percent to $3.66 a bushel, having dropped 1 percent in the last session.

Some Chinese buyers have cancelled corn purchases from the United States and switched to rival supplier Ukraine, as Beijing tightens controls on processing genetically modified strains of the crop, trade sources said.

Copyright Reuters, 2018

Source: Brecorder.com

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