Wheat advances to one-month high on weaker dollar
Tuesday, 12 January 2010
SINGAPORE, Jan 11 (Bloomberg): Wheat futures rose to the highest in more than a month, and corn and soybeans gained, as a weaker dollar improved the investment appeal of commodities and higher crude oil prices boosted demand for crops used to make biofuels.
The dollar fell to its lowest in more than three weeks after a recovery in Chinese exports boosted confidence in the global recovery and demand for higher-yielding currencies. Fund managers and other large speculators pared their bets on falling wheat prices by 20 per cent in the week ended January 5, according to US Commodity Futures Trading Commission data.
"Monday's wheat, corn and soybean prices are not reflecting the fundamentals," said Eric Bailon, president of Manila-based grain importer Paritas Trading Corp. "They're being driven by funds investing in commodities."
Wheat for March delivery gained as much as 1 per cent to $5.74 a bushel, the highest price for the most-active contract since December 4. It traded at $5.72 on the Chicago Board of Trade at 1:56 p.m Singapore time.
The Dollar Index, which tracks the value of the greenback against six major currencies, lost as much as 0.7 per cent to 76.92, the lowest intra-day level since December 17.
Crude oil for February delivery rose for a second day in New York, rallying as much as 1.1 per cent to $83.67 a barrel on speculation increasing demand and constraints on supply will reduce global stockpiles.
The dollar fell to its lowest in more than three weeks after a recovery in Chinese exports boosted confidence in the global recovery and demand for higher-yielding currencies. Fund managers and other large speculators pared their bets on falling wheat prices by 20 per cent in the week ended January 5, according to US Commodity Futures Trading Commission data.
"Monday's wheat, corn and soybean prices are not reflecting the fundamentals," said Eric Bailon, president of Manila-based grain importer Paritas Trading Corp. "They're being driven by funds investing in commodities."
Wheat for March delivery gained as much as 1 per cent to $5.74 a bushel, the highest price for the most-active contract since December 4. It traded at $5.72 on the Chicago Board of Trade at 1:56 p.m Singapore time.
The Dollar Index, which tracks the value of the greenback against six major currencies, lost as much as 0.7 per cent to 76.92, the lowest intra-day level since December 17.
Crude oil for February delivery rose for a second day in New York, rallying as much as 1.1 per cent to $83.67 a barrel on speculation increasing demand and constraints on supply will reduce global stockpiles.