CHICAGO: US soyabean futures hit their highest in nearly two months on Thursday and wheat futures rose more than 2% as a weaker dollar bolstered export prospects for US grains and oilseeds, analysts said.

Corn futures followed the firm trend.

As of 12:49 p.m. CDT (1749 GMT), Chicago Board of Trade July soyabeans were up 12 cents at $8.69-1/2 per bushel after reaching $8.73-1/4, the contract's highest since April 13.

CBOT July wheat was up 13 cents at $5.25 a bushel after touching $5.29, its highest since April 28, and July corn was up 4-3/4 cents at $3.28-3/4 a bushel.

Soyabeans climbed after the US Department of Agriculture for the second day in a row confirmed sales of US soyabeans to unknown destinations. Traders have said that China was the likely buyer both times, despite rising political tensions between Beijing and Washington.

The dollar weakened this month while Brazil's currency, the real, has firmed, making US soya more attractive to global buyers. Brazil is the world's biggest soya exporter.

“We are doing a fair amount of business. The US, I am told, is the cheapest soyabean origination out through January," said Tom Fritz, a partner with EFG Group in Chicago.

Technical buying in soyabeans accelerated as the CBOT July soyabean contract pushed above its 50-day moving average this week. CBOT July corn also broke through its 50-day moving average but chart resistance persists near $3.30 a bushel.

“The demand (for corn) is so bad and the supplies are so huge that it's really going to struggle up here," said Jack Scoville, analyst with the Price Futures Group.

Favorable crop weather in the US Corn Belt, with warm temperatures and periodic showers, should boost yield potential.

CBOT wheat surged on technical buying, uncertainty about supplies from the Black Sea region and Europe, and dryness in parts of the southern US Plains where wheat is still developing. The weekly US Drought Monitor showed moderate drought across 27% of Kansas, the top US wheat state.

Copyright Reuters, 2020