U.S. wheat at 3-week top on weak dollar, supply fears
Benchmark wheat prices rose for a sixth straight session to a three-week high on Thursday, while corn advanced to a two-week top as a weaker dollar boosted export prospects for agricultural commodities priced in greenbacks.
The euro climbed to five-week maximum against the dollar amid hopes of a breakthrough in Greek debt talks and as a dovish stance by the U.S. Federal Reserve supported investors' appetite for risk.
Dollar weakness allowed soybeans to shrug off pressure in the prior session due to downpours bringing relief in dought-hit supplier Argentina, and forecasts of rain in neighbouring
Brazil.
Additional support for the wheat market came from speculation that Russia, typically the world's third-largest exporter, might curb exports and thus help win export deals for
U.S. growers.
"Wheat, corn and soybeans have firmed as comments from the U.S. Fed are supporting markets, including commodities and stocks," said Ker Chung Yang at Phillip Futures in Singapore.
"Dollar is weaker and U.S. wheat is now more competitive in the international market."
Wheat traded on the Chicago Board of Trade for March delivery climbed 1.91 percent to $6.53-1/2 a bushel by 1317 GMT, its highest level since Jan. 3.
March soybeans rose 0.78 percent to $12.23 a bushel, while March corn advanced 1.38 percent to $6.43-1/4 a bushel, its highest level since Jan. 11.
World stocks, oil and gold all gained on Thursday after the U.S. Federal Reserve set out an unambiguously easier policy stance, but fears of a messy Greek debt default kept investors'
enthusiasm in check.
U.S. soft wheat is now competitively priced and may win deals for the first time in months from Egypt, the world's biggest wheat buyer, in the absence of Russian supplies.
Russia, however, says it has no plans to restrict exports while European traders say they have largely discounted such a move and note Russian exports have been slowing anyway due to
predictable logistical problems.
Western Europe's biggest exporter, France, is also hoping to fill the gap, amid expectations of export restrictions due to weather concerns in Argentina and shorter supplies in exporter
Ukraine due to drought damage to plantings.
"Argentina has also suddenly dropped out of the export market because of the uncertainty about its crop and government export policy," a European trader said.
Analyst ProAgro said on Thursday major exporter Ukraine's grain harvest was likely to come in at about 40 million tonnes in 2012, down from a record of 56.7 million tonnes in 2011 due
to a fall in acreage due to bad weather while winter crops were being sown.
In trade on France's Euronext exchange, front month March milling wheat was 0.7 percent higher at 209.50 euros a tonne, just shy of a 4-month high of 210.00 euros reached on
Tuesday.





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