GRAINS-Soy, corn and wheat regain ground on Argentina weather, dollar drop
Updates at 1249 GMT, changes dateline
PARIS/BEIJING, Jan 6 (Reuters) - Chicago soybean, corn and wheat futures rose on Monday to recoup some of their losses from the previous session, supported by dry conditions in Argentina and a sharp fall in the dollar.
The most-active soybean contract Sv1 on the Chicago Board of Trade (CBOT) was up 1.6% at $10.07-1/2 a bushel by 1249 GMT, after dropping 2% on Friday.
CBOT corn Cv1 added 1.2% to $4.56 a bushel, after Friday's 1.9% fall. CBOT wheat Wv1 rose 1.2% to $5.35-3/4 a bushel, having slid 3% on Friday when it touched its lowest since late August.
A hot and dry austral summer is beginning to damage Argentina's soybean and corn crops, the country's two main grains exchanges said on Friday.
With hot, dry weather forecast for the coming days, market relief over showers that fell in parts of Argentina last week was subsiding.
The risk of stress to crops in Argentina, the world's largest exporter of soybean oil and meal as well as the third largest exporter of corn, had already lent some support to prices in light year-end trading.
"For its first really big (post-holiday) week, the market should once again focus on the climate situation in Argentina with weather forecasts that remain warm and dry for the next two weeks," Argus analysts said in a note.
However, expectations of a record soybean crop from number one grower Brazil was capping gains in soybean prices, according to analysts.
Chicago grains also drew support from a sharp drop in the dollar =USD after the Washington Post reported that U.S. tariffs might be more narrowly focused than President-elect Donald Trump has previously threatened. MKTS/GLOB
A weaker dollar makes U.S. grain cheaper for overseas buyers.
Grain markets are also looking ahead to the world crop outlook from the U.S. Department of Agriculture on Friday, which will include updated estimates of the U.S. harvest and new projections of upcoming South American crops.
Prices at 1249 GMT |
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|
|
| Last | Change | Pct Move |
CBOT wheat Wv1 | 535.75 | 6.50 | 1.23 |
CBOT corn Cv1 | 456.00 | 5.25 | 1.16 |
CBOT soy Sv1 | 1007.50 | 15.75 | 1.59 |
Paris wheat BL2H5 | 231.50 | -1.50 | -0.64 |
Paris maize EMAc1 | 209.25 | -0.75 | -0.36 |
Paris rapeseed COMc1 | 514.25 | 4.00 | 0.78 |
WTI crude oil CLc1 | 74.43 | 0.47 | 0.64 |
Euro/dlr EUR= | 1.04 | 0.01 | 0.95 |
Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per metric ton |
| ||
(Reporting by Gus Trompiz in Paris and Ella Cao and Mei Mei Chu in Beijing; Editing by Sherry Jacob-Phillips, Sumana Nandy and Chizu Nomiyama )
((gus.trompiz@thomsonreuters.com))
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