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Wheat edges higher after hitting 1-month low

SYDNEY/PARIS (Reuters) - U.S. wheat edged higher on Wednesday after hitting a nearly one- month low in the previous session, boosted by an easing dollar which also helped other grains in Chicago.

Wheat
Soft red winter wheat has been hit hard by fusarium head blight this year. The fungus shrivels grain and reduces the average weights from harvest, cutting profits.

SYDNEY/PARIS (Reuters) - U.S. wheat edged higher on Wednesday after hitting a nearly one- month low in the previous session, boosted by an easing dollar which also helped other grains in Chicago. Corn and soybean futures continued to benefit from technical support as investors took advantage of recent declines to contract lows to cover bearish bets placed as farmers reaped huge harvests of both crops across the U.S. Midwest. Chicago Board of Trade December wheat futures rose 0.2 percent to $4.88-1/2 a bushel after closing down 1.3 percent on Tuesday when prices hit $4.84-1/2, the lowest since Oct. 20. January soybeans gained 0.3 percent to $8.66-1/2 a bushel, having firmed 0.5 percent on Tuesday while December corn was up 0.4 percent to $3.63-1/2 a bushel, after gaining 0.6 percent in the previous session. Analysts said wheat remains under pressure amid ample global supplies, while forecasts for rain that will boost production of winter wheat were also weighing on prices. The dollar slipped from a seven-month high against a basket of currencies on Wednesday as markets awaited minutes of the Federal Reserve's recent policy meeting which could reinforce expectations of a U.S. rate rise next month. However, "global supply prospects have improved in recent days and with continued soft demand for U.S. supplies, there hasn't been much to support prices," said one Sydney-based grains trader, who declined to be named as he is not authorized to talk to the media. The U.S. Department of Agriculture said in its weekly crop progress report released on Monday that 52 percent of the winter wheat crop was rated good to excellent, up one percentage point from the prior week.

Related Topics: CORNSOYBEANSCROPSWHEAT
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