Linked In
News In
Linked In

You are viewing your 1 complimentary article.

Register now to receive full access.

Already registered?

Login | Join us now

Morning markets: dollar retreats to crops' favour

Twitter Linkedin eCard

Crops kept their hold on positive territory on Thursday, helped by renewed weakness in the dollar and continuing fears over the frost forecast for the US Midwest this weekend.

The dollar's move against the Australian dollar have, of late, been viewed with particular interest.

Besides being a currency largely associated with the strength of (mainly hard) commodity prices, the Aussie dollar gained the spotlight earlier this week when the country's central bank raised interest rates.

On Thursday, it garnered the limelight once again thanks to better-than-expected Australian jobs data.

That fuelled a general sell-off in the US dollar, which has been viewed as a safe haven from tough economic times, with the greenback losing 0.4% against the euro and the yen.

Greenback retreats make US exports such as crops more competitive.

Wheat makes ground

Chicago wheat responded particularly well, adding 5.25 cents to $4.68 a bushel for December delivery by 06:00 GMT.

Data from the Buenos Aires Grain Exchange pegging Argentine output down 18% in 2009-10 boosted investor sentiment.

The grain has now rebounded 6.5% from its low on Monday.

Corn rally

Corn's rally is beginning to look even more impressive. At $3.62 ½ a bushel, up 2.75 cents on the day, the grain has rebounded nearly 20% from a low a month ago.

Frost threats, to a backward if fine-looking crop, have been a major bull factor, with the latest predictions of a Midwest freeze making it on to short-term forecasts and looking ever more likely to be realised.

Meteorlogix's latest call on eastern and western US corn areas predicts snow in some areas, with "frost and freeze conditions likely developing early Saturday through western and north western areas.

It added: "Cool and unsettled weather is unfavourable for the maturing [corn] crop and early harvest."

That was some help to soybeans too, another autumn-harvested crop, although one less behind than corn.

November soybeans added 7.75 cents to $9.19 ¾ a bushel.

Rising inventories

That was better than their vegetable oil rival, palm oil, did, overhung by expectations of a loosening Malaysian market.

Data next week are expected to show a drop in Malaysian exports and a rise in production, making for a jump in stocks.

A poll for Reuters, the news agency, showed traders were expecting a 7.4% rise to 1.52m tonnes in inventories in September, with exports falling 2.0% and production up 4.4%.

Benchmark December palm oil closed the morning session on the Bursa Malaysia derivatives exchange down 14 ringgit at 2,063 ringgit a tonne on light volumes.


Twitter Linkedin eCard
Related Stories

Evening markets: Soybean futures gain, cotton prices jump on US data

Initial USDA forecasts for crop supply and demand for 2018-19 lift soy and cotton prices, but are not so well received in the cotton market

Weekly grain market view from Europe, February 23

EU cold snap could damage crops... UK market prices in closure of Vivergo ethanol plant... Rising Russian wheat prices...

Evening markets: Argentine moisture slips up soymeal rally. But weather revives wheat

Meal futures dip, a little, for the first time in 12 sessions. But wheat futures gain, as drought spreads in Kansas, and cold reaches Europe

Morning markets: Ag futures ease, as traders await key 2018 forecasts

US officials will later on Thursday issue the first of a series of forecasts for US crops in 2018-19. Markets are cautious in the mean time
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© 2017 and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of AgriBriefing Ltd
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069