Wheat, corn, soybeans firm Wednesday morning
U.S. wheat, corn and soybeans rose on Wednesday as global markets rallied following President Barack Obama's election victory, while an export-boosting fall in the U.S. dollar also supported.
"The impact of the U.S. election result is the main driver today, with wheat, corn and soybeans supported by a general risk-on attitude coming back into commodities," said Ole Hansen, head of commodity strategy at Saxo Bank.
"The weaker dollar is also giving U.S. grains a lift, especially wheat because of the additional export benefit at a time when other countries such as Australia and Argentina seem to be facing increased production problems."
Chicago Board of Trade December wheat rose 0.8 percent to $8.84 a bushel by 1128 GMT. Chicago November soybeans rose 0.08 percent to $15.18 a bushel and December corn rose 0.4 percent to $7.44 a bushel.
World equities and gold rallied and the dollar fell on Wednesday after Obama was re-elected for a second presidential term, signalling no dramatic shift in U.S. economic policy.
U.S. wheat had gained for the previous two days as the market was buoyed by the poor condition of the just-planted winter crop in the United States and weather trouble in rival exporters Australia and Argentina.
The U.S. Department of Agriculture (USDA) will review global crops in its key world grains supply and demand estimates on Friday.
"Attention is now turning to the USDA report on Friday. Fundamentals are looking pretty supportive for the grains sector, especially wheat and soybeans," said Hansen.
European benchmark January wheat in Paris was up 1.2 percent at 274.75 euros a tonne.
"The macro uncertainty surrounding the U.S. elections will now dissipate as might the reaction to the U.S. hurricane," said Rory Deverell at Intl FC Stone Europe.
"The Greek uncertainty looks set to linger a few more days. This leaves the focus on the USDA report on Friday, which most believe will provide a slightly bearish yield and production for the U.S. and a more bullish global outlook," he added.
Some analysts expect the USDA to raise its soybean production estimate, reflecting late rain that allowed a partial recovery in yields after severe summer drought, although this additional supply would be absorbed by strong demand for the oilseed.
In corn, the USDA's harvest estimate was expected to stabilize after falling sharply during the past four months due to the drought in the U.S. Midwest.
Global soybean consumers are counting on a bumper South American harvest to relieve current tight global supplies, but concern is growing that rain in parts of Argentina could disrupting sowings. Any USDA comments on worsening soybean prospects will be closely watched.
Argentina's 2013 soybean crop may be 3 million to 6 million tonnes below earlier forecasts of 55 million to 56 million tonnes as repeated rain is disrupting sowing, Hamburg-based oilseeds analysts Oil World said on Tuesday.