GRAINS-Corn, soybeans rise on broad commodities strength; wheat mixed
(New throughout, updates prices, adds quotes, changes byline, changes dateline from previous SINGAPORE/PARIS)
By Julie Ingwersen
CHICAGO, Oct 4 (Reuters) -
U.S. corn and soybean futures rose on Tuesday, following broad strength in commodity and equity markets tied to easing concerns about the global economy, traders said.
The dollar index cooled, retreating farther from two-decade highs set last month after Australia's central bank surprised investors with a smaller-than-expected interest rate hike, moderating fears that higher rates globally would trigger a recession. A softer dollar also tends to make U.S. grains more competitive in the export market.
"If you look at the outside markets, you'd say it should be a 'risk-on' environment," said Don Roose, president of Iowa-based U.S. Commodities.
As of 12:59 p.m. CDT (1759 GMT), Chicago Board of Trade December corn was up 3-3/4 cents at $6.84-1/2 per bushel and November soybeans were up 12-3/4 cents at $13.86-3/4 a bushel.
Strength in crude oil helped lift grain futures, given corn's role as the main U.S. feedstock for ethanol fuel and soyoil's use in biodiesel, Roose said.
Seasonal pressure from the expanding U.S. harvest also hung over the market, although traders are awaiting more information on harvested yields to get a better understanding of the size of U.S. crops.
The U.S. corn harvest was 20% complete as of Sunday, the U.S. Department of Agriculture (USDA) said in a weekly crop progress report, trailing the five-year average of 22%. The soybean harvest was farther ahead at 22% complete, surpassing the average analyst estimate of 20% but behind the five-year average of 25%.
U.S. wheat futures were mixed, with CBOT soft red winter wheat declining while K.C. hard red winter wheat rose on worries about dry conditions in the Plains hard wheat belt. CBOT December wheat was down 5 cents at $9.07 a bushel, and K.C. December hard wheat was up 2 cents at $9.90-3/4.
"Dryness is a problem across both the (U.S.) hard red and soft red winter wheat belts, but the greatest concerns longer-term are for the lingering drought in the Plains," Arlan Suderman, chief commodities economist at StoneX, wrote in a client note.
Traders continue to monitor tensions between Russia and Ukraine, which are among the world's leading grain exporters.
Ukraine's winter wheat sowing for the 2023 harvest has covered only a third of the area completed at the same time last year, data from the European country's agriculture ministry showed on Tuesday. (Additional reporting by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris; editing by Subhranshu Sahu, David Goodman and Paul Simao)
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