GRAINS-Soy, wheat futures rise as weaker U.S. dollar raises export hopes
Dollar slide encourages gains in CBOT grains
U.S. to issue weekly export sales data Thursday
CBOT wheat rebounds from one-month low
(Updates with U.S. trading, changes dateline, pvs PARIS/SINGAPORE)
By Tom Polansek
CHICAGO, Oct 26 (Reuters) - Chicago Board of Trade grain and soybean futures strengthened on Wednesday as weakness in the U.S. dollar raised hopes for improved export demand for American crops, analysts said.
The dollar fell near a three-week low versus major peers after poor U.S. economic data reinforced speculation that the Federal Reserve will slow its interest rate hikes. A softer dollar makes U.S. commodities look more attractive to importers on the global market.
Low water levels on the Mississippi River have shifted U.S. crop exports during the peak export season from Gulf Coast facilities to the Pacific Northwest and South American ports, said Greg Heckman, chief executive of grain trader Bunge Ltd, on an earnings call.
Grain traders on Thursday will review weekly export sales data from the U.S. Department of Agriculture.
Most-active CBOT soybean futures were up 13 cents at $13.95 a bushel by 10:14 a.m. CDT (1514 GMT). Corn was up 2 cents at $6.88-1/4 a bushel and reached its highest price in more than a week. Wheat jumped 6 cents to $8.40-3/4 a bushel, after dropping earlier in the session to its lowest price since Sept. 19.
Soybean futures felt an additional boost as U.S. farmers are finishing harvests that bring new supplies to the market, analysts said. The soy harvest was 80% complete as of Sunday, above the five-year average of 67%, according to the U.S. Department of Agriculture.
Rains in U.S. and Argentine wheat-growing areas also eased some worries about unfavorable dryness, analysts said.
In other news, United Nations' aid chief Martin Griffiths said he was "relatively optimistic" that a U.N.-brokered deal that allowed Ukraine Black Sea grain exports would be extended beyond mid-November.
Grain exports from Ukraine have slowed over the past 10 days, with volumes so far this month 9% behind the same period last year, agriculture ministry data showed on Wednesday. (Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore Editing by Kirsten Donovan and Matthew Lewis)
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