Chicago corn and soybeans strengthened on Monday as a weaker dollar supported U.S. exports and funds bought back some of their short positions.
Wheat futures closed slightly higher after earlier falling as global financial markets fell on fears of a U.S. recession.
Chicago Board of Trade corn rose 4 cents to $4.07 a bushel. Soybeans rose 13.5 cents to $10.40-3/4 a bushel. Wheat rose 1/2 cent to $5.39-1/2 a bushel.
Global stock markets fell as fears of a U.S. recession drove investors away from risk while betting on the need to cut rates to rescue growth, and the dollar fell against major currencies.
The weaker dollar is a supportive factor for corn and soybeans, said Randy Place, an analyst at Hightower Report. A weaker dollar tends to make U.S. exports more attractive.
He added that commodity funds were already heavily short corn and soybeans. When the stock market drops significantly and energy and metals also plunge, funds have to reduce risk and buy back some of their short positions, Place said.
The weather in the US was expected to be mostly dry this week, which is also positive for the final stages of the US winter wheat harvest.
After markets closed, the U.S. Department of Agriculture reported that weekly U.S. corn crop condition ratings fell last week, in line with analyst estimates, but soybean ratings improved surprisingly.
Spring Wheat Grades
remained stable.
In the EU, the wheat harvest, hampered by summer rains, was showing progress. French farmers harvested 67% of this year’s soft wheat crop on July 29, up from 41% a week earlier, although behind usual progress after rain disrupted work. (Reporting by Renee Hickman in Chicago; additional reporting by Michael Hogan in Hamburg and Naveen Thukral in Singapore; editing by Chris Reese)
