Content ID

334420

GRAINS-Soybeans rise, but harvest pressure, strong dollar limit gains

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Soybeans edge up after closing lower as U.S. harvest progresses

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Chicago wheat futures fall, corn firm; market eyes U.S. dollar

(Adds quote in paragraphs 3-4, updates prices)

By Naveen Thukral

SINGAPORE, Oct 6 (Reuters) - Chicago soybean futures inched higher on Thursday, although pressure from rapidly progressing U.S. harvest and a stronger dollar kept a lid on prices.

Wheat eased, while corn prices ticked higher.

"A strong rally in the U.S. dollar, plus talk of potential slowdown in exports due to low river levels, plus a risk-off mode for commodities were all seen as negative forces," according to a Hightower report. "In addition, the weather looks ideal for active harvest."

The most-active soybean contract on the Chicago Board of Trade (CBOT) added 0.2% to $13.73 a bushel, as of 0221 GMT. Wheat lost 0.2% to $9.00-1/4 a bushel and corn rose 0.1% to $6.84-1/4 a bushel.

The dollar fought for a footing in choppy trade on Thursday, with support from upbeat U.S. data and hawkish policymaker comments, while the prospect of higher energy prices helped exporters' currencies and weighed on those of importers.

A stronger dollar makes the greenback-priced commodities expensive for importers holding other currencies.

The U.S. harvest of corn and soybeans is progressing under clear skies across much of the Midwest this week, adding seasonal pressure to the markets as traders monitored yield reports from farmers.

The corn harvest was 20% complete by Sunday and the soybean harvest was 22% complete, the U.S. Department of Agriculture (USDA) said.

Commodity brokerage StoneX raised its estimate of the average U.S. corn yield to 173.9 bushels per acre (bpa), from 173.2 previously, but lowered its corn production estimate to 14.056 billion bushels, from 14.168 billion last month.

For soybeans, StoneX lowered its forecast of the U.S. 2022 yield to 51.3 bpa from its Sept. 1 figure of 51.8. The firm forecast U.S. soybean production at 4.442 billion bushels, down from 4.515 billion previously.

The USDA is scheduled to release updated crop estimates on Oct. 12.

In the wheat market, the lowest price offer submitted in the tender on Wednesday from Iraq's state grains board to buy a nominal 50,000 tonnes was believed to be $386 a tonne for cargo to be sourced from Ukraine.

Commodity funds were net sellers of CBOT soybean, soymeal and wheat futures contracts on Wednesday and net buyers of corn and soyoil futures, traders said. (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)

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