Chicago Close: Wheat Futures Gain as US Dollar Weakens 

Wheat futures posted double-digit advances on Wednesday as the US dollar fell in the wake of a dovish US inflation report. 

The US Bureau of Labour Statistics reported the annual US inflation rate eased from a 40-year high of 9.1% in June to 8.5% in July – slightly below market expectations. The report helped to send the greenback lower, making American wheat appear less expensive to foreign buyers. Positioning ahead of Friday’s USDA supply-demand update added to the upside. September Chicago wheat was up 18 ¼ cents at $7.99 ¾, September Kansas City gained 21 cents to $8.72 ¾, and September Minneapolis was 13 ½ cents higher at $9.06 ¼. 

Corn ended with gains but finished well off its daily highs. Expectations for a lower yield estimate in Friday's USDA report and the lower US dollar were supportive. September gained 5 ¾ cents to $6.21 ¼ and December was up 4 ½ cents to $6.18 ½. 

Updated forecasts calling for cooler and wetter weather in crop-growing areas next week undermined soybean futures which started the day stronger. September lost 3 ¼ cents to $15.09 and November was down a penny at $14.27 ¾. 

Source: DePutter Publishing Ltd.

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