US wheat and corn futures were narrowly higher on Tuesday as traders covered short positions after prices for each crop fell to the lowest levels in more than a week. The dollar reversed lower after a nine-month high against a basket of currencies, further underpinning grain prices, as a weaker dollar makes US goods more attractive in global markets. Grain traders were awaiting tender results from top global wheat buyer Egypt, which was seeking wheat for December 1-10 shipment. Egypt has bought most of its wheat needs from Russia in recent weeks.
Cargill Inc offered 55,000 tonnes of US soft red or hard red winter wheat, amongst 10 offers for Russian and Romanian wheat, traders said. "Wheat futures found support on reports on one cargo of US wheat being offered to Egypt in their latest tender," said analyst Dan Cekander of DC Analysis LLC. Chicago Board of Trade December wheat futures settled 1-3/4 cents higher at $4.04-1/4 per bushel. CBOT December corn gained 1 cent to $3.49-1/4 per bushel, rising after US Department of Agriculture data showed the US corn harvest slightly behind the average pace. Soyabean futures traded in a wide trading range, losing as much as 10 cents per bushel before finishing nearly flat. The November soyabean contract finished 1-1/4 cents lower at $9.90-3/4 per bushel.
Soyabean prices fell early in the session, declining in part due to pressure from a steep drop in Malaysian palm oil futures. But soyabeans rallied after the US Department of Agriculture at midmorning said China bought 516,000 tonnes of US soyabeans. Brazilian exporters last week signed deals for four soyabean shipments for delivery to China in November and December, before the new crop is harvest early in 2017 in South America, trading sources said.
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