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Weakening US dollar lifts wheat prices

By Reuters News

CANBERRA, Nov 5 (Reuters) - Chicago wheat futures rose on Thursday as a weaker US dollar made US crops more competitive in global markets, but prices stayed near four-month lows on expectations that grain exports through the Black Sea could increase.

Corn and soybean futures also gained after reaching multi-month lows in the previous session.

FUNDAMENTALS

* The most-traded wheat contract on the Chicago Board of Trade (CBOT) was up 0.5% at $6.01-3/4 a bushel at 0121 GMT.

* CBOT corn rose 0.4% to $4.46 a bushel and soybeans were up 0.2% at $12.04-1/2 a bushel.

* From highs in early September CBOT wheat has fallen around 25%, while corn has slipped around 20% and soybeans around 10%.

* Supporting prices on Thursday was a weakening in the US dollar that accelerated after the Democrats swept to victory in US midterm elections. FRX/ .DXY

* Wheat prices were lifted earlier in the year by the throttling of Russian and Ukrainian exports via the Black Sea.

* But both nations are shipping increasing amounts of grain via alternative routes and have confirmed they will take part in three-way peace talks with the United States in Abu Dhabi on November 10-11, which could reopen Black Sea shipping.

* In other crops, commodity brokerage StoneX on Tuesday raised its estimates for the ongoing US corn and soybean harvests. Traders are waiting for updated USDA harvest estimates next week.

* The US soybean crop is expected to be the biggest on record and the corn crop the second-biggest.

* Rain has interrupted harvests in some parts of the US, slowing some cash sales of crops by farmers, according to traders.

MARKETS NEWS

Global stocks rallied on Wednesday after Democrats seized control of both chambers of Congress in the US midterm elections, providing greater political clarity and reducing uncertainty that has weighed on markets. MKTS/GLOB

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