U.S. soybeans rose on Friday, recovering from a dollar-driven sell-off in commodities a day earlier, as concerns over crop losses in Argentina underpinned a market that was heading for its sixth consecutive weekly rise.
Corn and wheat edged higher as they also steadied after Thursday's drop, helped by renewed appetite for commodities and equities among investors despite the dollar index holding near a two-month high.
The Chicago Board of Trade most-active soybean contract was trading up 0.7 percent at $10.78-1/2 a bushel. This put the contract up 1.3 percent over the week and took its gains over the past six weeks to over 17 percent.
"The soybean prices are showing substantial resilience," said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia. "That resilience hints that the market is well supported for now."
The soybean market is continuing to weigh the extent of crop losses in Argentina after recent flooding. The rain-delayed harvest has helped shift some export toward U.S. soybeans.
The U.S. Department of Agriculture reported export sales of U.S. soybeans in the latest week at 556,400 tonnes for 2015/16, above trade expectations.
Soybean and corn prices are also prone to react to planting expectations during the U.S. spring. Recent rallies in soybeans are likely to encourage U.S. farmers to plant more of the oilseed, and may also prompt growers to add more corn in the hope prices will track gains in soy.
Corn prices have also been supported by concerns over dry weather in Brazil that as led forecasters to reduce their harvest estimates.
Producers in isolated parts of Brazil's main grain state of Mato Grosso started harvesting the winter corn crop earlier than expected to take advantage of near record prices, as the drought that has curtailed yields also accelerated the crop's maturation.
The most active Chicago corn futures were up 0.4 percent at $3.91-1/2 a bushel, while wheat added 0.3 percent to $4.70-1/4 a bushel.
The USDA reported export sales of U.S. wheat in the latest week at 175,200 tonnes for 2015/16, in line with trade expectations, and 573,500 tonnes for 2016/17, above expectations.
But a strong dollar, which makes greenback-priced commodities expensive for importers holding other currencies, could curb export demand as U.S. wheat tries to win overseas sales in a well supplied world market.