Chicago soybeans rebounds on weak dollar, oil hike

Chicago soybeans on Wednesday bounced off weak sentiment amid sharp drop in U.S. dollar as well as continued hikes of crude oil. However, corn suffered moderate drops and wheat closed mixed after three-day rise.
The most active corn contract for July delivery fell 16.5 U.S. cents, or 2.18 percent, to close at 7.405 U.S. dollars per bushel. July wheat inched down 0.25 cents, or 0.03 percent, to 8.2075 dollars per bushel. July soybean hiked 15.25 cents, or 1.13 percent, to 13.54 dollars per bushel.
Market analysts said that the soybeans market mainly gained strength from weakening dollar. The U.S. dollar index, which tracks the performance of the U.S. unit against a basket of rival currencies, further declined to 74.465 on Wednesday, down from 75. 038 late Tuesday.
Meanwhile, the continued hikes in the crude oil price also contributed to soybean's gain. The crude oil price on Wednesday rose 3.17 dollars to 111.45 dollars per barrel.
The corn market, however, suffered a moderate correction as weather forecast indicated more normal conditions across the corn belt during the first week in May, which would allow corn planting to resume.
According to a government report, about seven percent of the corn crop was planted as of April 17, lower than 16 percent in the same period of last year.
Besides, statistics showed that the U.S. ethanol production has suffered a larger-than-expected slowdown in the previous week, adding to the negative tone in the corn market.
Meanwhile, although wheat market found support on additional forecast for dryness over the hard red winter wheat area in the southern plains, which could further deteriorate the crop conditions and crop yield prospect, the wheat prices have been on the rise for three consecutive trading days and is facing technical correction.
Source: Xinhua