Crop damage fears, grains and soybeans gained on weak US dollar

Chicago wheat led the gains as the most active wheat contract for July delivery rallied 10 cents, or 2.09 percent, to 4.8775 dollars per bushel. Soybean for July delivery added 17.5 cents, or 1.73 percent, to 10.2725 U.S. dollars per bushel. July corn delivery gained 5.5 cents, or 1.44 percent, to 3.8725 dollars per bushel.

Chicago grains and soybeans advanced on Tuesday for a second straight session, bolstered in large part by a lower U.S. dollar for the day. The U.S. Dollar Index, a measure of the dollar against six major currencies, lost more than 0.4 percent during the session, lifting dollar-denominated commodities, especially wheat.

July soybean and corn rallied strongly, supported by some forecasters lowering their outlooks for soybean output in Argentina, a major U.S. rival for production and export of soybeans, and Brazil’s corn production in 2016. Concerns over damage to the South American crop due to adverse harvest weather, had fueled a spate of buying by commodity funds in April.

Gains in the corn market were capped by the fast pace of planting in the U.S. Midwest. The U.S. Department of Agriculture(USDA) late Monday reported about 30 percent of the U.S. corn crop was planted as of April 24, compared to 13 percent a week earlier. Approximately 16 percent of the crop was planted in the same week a year earlier, while the five-year average for this time of year is 16 percent. Enditem

Source: Xinhua