Soybeans, wheat tick up on growing demand, weaker dollar
Weaker dollar leads to greater demand
Flash sales of soybeans to China, Mexico
U.S. wheat prices competitive with Russia, Ukraine
Rewrites throughout; updates prices, analyst quotes; adds bullets; changes dateline from PARIS/CANBERRA
By Renee Hickman
CHICAGO, Aug 20 (Reuters) -Chicago soybean and wheat futures edged higher on Tuesday as signs of growing demand appeared for both crops.
In corn, traders monitored the progress of the Pro Farmer crop tour, which began traversing the Midwest on Monday and forecast high yields in the first states.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 was up 2-3/4 at $9.78-3/4 a bushel by 11:41 A.M. CDT (1641 GMT), while CBOT corn Cv1 fell 1 cent to $3.99-1/4 a bushel.
News that exporters sold 332,000 metric tons of U.S. soybeans to China on Monday, and 239,492 tons to Mexico on Tuesday as well as another 132,000 tons to China, helped underpin prices in the previous session.
"Our demand is beginning to ramp up here," said Randy Place, an analyst at the Hightower Report. "It's been way behind the game for a long time, but the last two days, we've had some pretty big sales."
Place said the sales were the effect of a weaker dollar.
"I think this weakening dollar is giving people the idea that maybe we're able to export enough of the crop to keep supplies from being too high in the U.S."
Meanwhile, scouts on the Pro Farmer tour estimated corn yield prospects in both Ohio and South Dakota were below last year's findings, but higher than the three-year average.
In wheat, Place said U.S. soft red wheat prices were very competitive with Russia and Ukraine, with large supplies and the spring wheat crop set to also be strong.
"That's a little different than several months back when Russia and Ukraine prices were just so much lower than us, we couldn't sell anything," he said.
"That's changed with this weaker dollar."
CBOT wheat Wv1 was up 3-1/4 cents at $5.55-1/2 a bushel.
Reporting by Renee Hickman; Additional reporting by Gus Trompiz; Editing by David Holmes
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