Grain futures edge higher on weaker dollar, increased exports

Grain futures extended Wednesdays gains as a broadly weak greenback underpinned dollar-denominated commodities. Soybeans drew support on growing demand from worlds top consumer China, while wheat exports rose as well. Corn outbound shipments statistics will be released by the USDA later today.

On the Chicago Board of Trade, soybeans futures for delivery in November rose by 0.61% to $13.5663 per bushel at 9:21 GMT. Prices held in range between days high and low of $13.5888 and $13.5138 per bushel respectively. The oilseed rose 0.5% on Wednesday and trimmed its weekly decline to 1.8% following Thursdays advance.

Soybeans continued to pare their weekly decline as the USDA reported that U.S. exporters have sold 1.93 million tons to China for delivery by August 31. This was the fifth biggest sale on record. The oilseed has rebounded 16% after hitting a 19-month low in August as unfavorable weather conditions threatened to curb yields.

The U.S. Department of Agriculture trimmed its crop estimate to 3.149 billion bushels this year on September 12, down from August’s 3.255 billion, as a result of recent unfavorable weather conditions. Analysts surveyed by Bloomberg expected a drop to 3.134 billion bushels. Yields projections were trimmed in nine Midwest states where drought vastly expanded.

The government agency said on Monday that soybeans’ condition has worsened for a fifth consecutive time last week. As of September 15, 18% of the crop was rated very poor-poor, compared to 16% a week earlier and 36% in 2012. Meanwhile, 32% of the plants were categorized as “Fair”, matching the previous week’s reading and 1% above last year. As for the premium quality, 50% of the crop was rated good-excellent, down 2% from the preceding week and well above 2012′s 33%.

Profarmer Australia, a unit of NZX Ltd., said in a report yesterday: “Ongoing purchases by China continued to underpin the U.S. soybean futures market. The market has been speculating that there may be further cuts to soybean ending stocks in the October report, as well as what the final impact of the recent hot weather will be.”

Corn gains as well

Meanwhile, corn gained as well amid expectations for increased exports of the biggest U.S. crop. Corn futures for delivery in December rose by 0.76% to $4.5988 per bushel at 9:20 GMT. Prices held in range between days high and low of $4.6038 and $4.5713 per bushel respectively. The grain rose by 0.6% on Wednesday after rebounding from a 37-month low of $4.5213 and erased its weekly decline.

According to a Bloomberg survey, U.S. corn exports may have increased to 350 000 tons in the week ended September 12 from 332 595 tons in the preceding period. The USDA is due to release its outbound shipments statistics at 12:30 GMT.

The government agency said last Thursday that the nation will harvest a record 13.843 billion bushels of corn in 2013, confounding analysts’ projections for a drop to 13.641 billion bushels from 13.763 billion estimated in August. Domestic output will be 28% higher than last year’s drought damaged crop. U.S. corn reserves will total 1.855 billion bushels on August 31, 2014, above the previous estimate of 1.837 billion. Global inventories will surge 24% to a 12-year high, the agency reported.

The USDA reported on Monday that the corn crop condition marked a slight deterioration last week. As of September 15, 53% of the plants were rated good-excellent, compared to 54% a week earlier and 24% in 2012. Meanwhile, 18% of the crop was categorized as “Very poor” and “Poor”, 1% above the previous week and well below last year’s 50%.

Wheat up as well

Wheat rose for a fourth day. Futures for December settlement rose by 1.10% to $6.5413 per bushel at 9:08 GMT. Prices held in range between days high of $6.5463, the strongest level since September 3, while days low stood at $6.4663 per bushel. The grain gained 0.5% on Wednesday and extended its weekly advance to 2.1%.

The U.S. Department of Agriculture reported on September 16 that during the week ended September 12, export inspections rose by 56% 46.024 million bushels.

DTN reported on September 18 that recent rainfall has helped improve planting moisture for the winter wheat crop in the Southern Plains, which was felt even in the hard-hit flooded Colorado. The USDA said in its crop report on Monday that as of September 15, 12% of the crop was planted, matching the five-year average pace and surpassing last week’s 10%. This marked a 7% advance from the preceding period.

Meanwhile, the agency also reported that showers on Wednesday favored late-filling summer crops but may delay harvests. The USDA said on Monday that as of last week, 90% of the spring wheat crop was reaped, compared to the five-year average of 87%. This marked a 10% advance from the preceding week but fell behind last year’s 99% of crop harvested.