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Morning markets: crops respond to oil-dollar boost

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Chicago commodities at last overcame weather factors to respond to the barrage of external stumuli, with soybeans bouncing back above $12 a bushel.

The dollar remained weaker on Thursday, standing at more than $1.40 against the euro.

That is typically a fillip for dollar-denominated commodities, as become less expensive for buyers paying in other currencies.

Meanwhile, oil added to gains made follow rebel attacks on facilities in Nigeria, Africa's biggest oil producing state, which raised the spectre of tighter supplies.

New York crude for August stood $0.67 higher at $70.90 a barrel at 07:00 GMT.

Higher oil tends to raise the prices of agricultural commodities, as many of them are now used to make biofuels.

Soybeans top the pile

This time Chicago crops perked up, making up some of the ground lost on Wednesday when investors fretted that warm and dry weather in US growing districts meant that farmers were heading for better-than-expected harvests.

Corn for July added 0.75 cents to $3.83 a bushel, a pattern repeated in new crop contracts.

Wheat, which closed the last session at its lowest for nearly two months, was 1 cent firmer at $5.34 a bushel.

Still, soybeans, as so often of late, performed the best, adding 13.25 cents to $12.09 ¼ a bushel for July delivery, aided by the prospect of a 32-year low in US stocks.

New crop beans made smaller gains, with the November contract up 4.5 cents at $10.06 ¼ a bushel.

Monsoon calculations

However, this performance failed to help its vegetable oil partner, palm oil, sliding 0.7% in Kuala Lumpur as investors took profits from a rally fuelled by the prospect of strong Indian buying.

Indian government forecasters earlier this week predicted a weak Indian rainy season, raising concerns for this year's harvests.

"Traders… need to know more about the monsoon, so some are cutting down on some long positions, just in case," a trader told Reuters, the news agency.

Bursa Malaysia's benchmark September palm oil contract lost 17 ringgit to 2,319 ringgit a tonne in the morning session.

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