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Soybeans, corn rise on Brazil weather worry, weaker dollar

November 21, 2023 00:00:00

HAMBURG, Nov 20 (Reuters): Chicago soybeans and corn rose on Monday as dealers assessed forecasts of rain for parched Brazilian crops, while a weaker dollar boosted export prospects by making US supplies cheaper in international markets.

Chicago Board of Trade most-active soybeans rose 0.3 per cent to $13.44-3/4 a bushel at 1209 GMT, after dropping to its lowest since Nov. 3 earlier on Monday.

Corn rose 0.1 per cent to $4.67-3/4 a bushe and wheat fell 0.2 per cent to $5.74 a bushel.

Showers this week will briefly ease heat and dryness stress in north Brazil's soybean area, Commodity Weather Group said. Northern Brazil is then expected to dry out again.

Dryness is forcing some Brazilian farmers to give upon soybeans to plant cotton or another crop.

"The weaker dollar, positive for US export prospects, is supporting grains and soybeans today along with concerns about weather in Brazil," said Matt Ammermann, StoneX commodity risk manager.

"Brazilian soybeans need more rain and more is forecast this week, but in the coming weeks the forecasts are again for hotter and dryer weather. This is also a factor supporting corn.

"The market also wants to see exactly how much of the rain forecast in Brazil actually falls. There is also the possibly that China could resume buying US soybeans."

China increased US soybean purchases this month.

"Wheat is being weakened by lack of demand and strong competition in export markets to US supplies, especially from Russia," Ammermann said.

Volumes in Ukraine's shipping channel reaching world markets continue to develop, with the market showing lack of concern about the latest reports of incidents involving ships such as the one last week of a vessel hitting a mine.

"What was viewed as massive risk a few months ago, seems now to be considered as the normal course of business in the Black Sea," he said.

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