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Chicago grains hold firm on soft dollar, mixed weather

By Gus Trompiz and Naveen Thukral

PARIS/SINGAPORE, Aug 11 (Reuters) - Chicago corn, wheat, and soybean futures edged higher on Thursday, underpinned by a weaker dollar and harvest risks posed by hot, dry weather in U.S. and European crop belts. Prices were trading below one-week highs seen in the previous session as the market awaited further direction from Friday's monthly supply-and-demand report from the U.S. Department of Agriculture.

The most-active corn contract on the Chicago Board of Trade (CBOT) was up 0.4% at $6.21 a bushel by 0919 GMT, while CBOT wheat added 1.0% to $8.07-3/4 a bushel. Soybeans ticked up 0.5% to $14.35-1/2 a bushel. Prices had eased earlier in the day but drew some fresh support from an upturn in crude oil.

A sharp drop in the dollar, triggered by a lower-than-expected July U.S. inflation reading, buoyed share prices and lent support to dollar-priced commodities.

"The macro mood got a boost from yesterday's cooler-than-expected ... July CPI data," Peak Trading Research said in a note. "Weather is still a huge X-factor, especially for soybeans."

Parts of the U.S. Midwest received rain in recent days, but heat in the western regions of the farm belt is expected to continue stressing crops, including soybeans going through a key growth phase. In Europe, persisting drought and high temperatures are threatening to deepen corn crop losses. The weather risks have added to interest in the USDA's monthly supply and demand forecasts on Friday. The government is expected to trim its outlook for U.S. corn production, according to a Reuters survey of analysts. Before that, grain markets will get a demand update from weekly U.S. export sales later on Thursday.

Traders are also continuing to monitor progress in the shipment of Ukrainian grain through a wartime sea corridor, notably to see if incoming vessels start to load.

Prices at 0919 GMT Last Change Pct End Ytd Pct Move 2021 Move CBOT wheat 807.75 8.00 1.00 770.75 4.80 CBOT corn 621.00 2.50 0.40 593.25 4.68 CBOT soy 1435.50 7.75 0.54 1339.25 7.19 Paris wheat 340.25 -0.25 -0.07 276.75 22.94 Paris maize 332.25 1.75 0.53 226.00 47.01 Paris rape 660.25 1.25 0.19 754.00 -12.43 WTI crude oil 92.62 0.69 0.75 75.21 23.15 Euro/dlr 1.03 0.00 0.29 1.1368 -9.16 Most active contracts - Wheat, corn and soy US cents/bushel, Paris futures in euros per tonne.

(Reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Sherry Jacob-Phillips, Subhranshu Sahu and Uttaresh.V)

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