A weaker U.S. dollar and continued dryness in the southern Plains helped to left wheat futures to good gains on Thursday.
The lower American dollar makes U.S. supplies appear more attractively priced to foreign buyers, spurring export business. Meanwhile, hot, mostly dry weather covers the central and southern Plains. According to this week’s U.S. Drought Monitor, 22% of the nation’s winter wheat production area is in drought, up from 12% just five weeks ago. Weekly export sales for new crop were also reported by the USDA this morning at 437,297 tonnes, above expectations. July Chicago wheat climbed 11 ¾ cents to $5.23 ¾, July Kansas City jumped 14 ½ cents to $4.72 ¼ and July Minneapolis gained 6 cents to $5.26 ¼.
The weakness in the greenback also offered support to soybeans, as did fresh export business with China. The USDA reported another private sale of soybeans to unknown destinations (likely China) this morning - 120,000 tonnes was split 50/50 between old and new crop. New-crop bean bookings were above estimates as well, with 607,400 tonnes sold.
Corn export sales were in line with trade guesses but the weaker dollar did offer some support. July corn gained a nickel to $3.29 and December was 4 ½ cents higher at $3.42 ¾.
Live cattle were higher today. Lean hogs were mainly higher.
Source: DePutter Publishing Ltd.
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