By PJ Huffstutter
CHICAGO (Reuters) – Chicago wheat, corn and soybeans rose on Friday, supported by strong commodity and equity markets, as well as hopes that China’s easing of Covid restrictions could boost demand.
The most active wheat contract rose 10.25 cents at $8.1375 a bushel. Corn rose 4.75 cents to $6.58 a bushel, while soybeans rose 27 cents to $14.50 a bushel.
Soybeans have rebounded on hopes that China’s move to ease some Covid restrictions could spur economic activity, potentially boosting demand for goods, including soybeans.
China on Friday shortened the quarantine by two days for close contacts of infected people and arriving travelers, and removed a penalty for airlines for bringing in too many cases. The loosening of restrictions has buoyed markets even as experts warned that reopening was likely still a ways off.
“The market is seeing this news as something spectacular,” said Jack Scoville, market analyst at Price Futures Group.
Oil strength also supported soybeans as well as the corn market on the day. Corn sometimes follows oil trends due to its role as the main US feedstock for fuel ethanol.
And the dollar fell for a second day of trading as investors bet that peak US inflation will prompt the Federal Reserve to rein in interest rate hikes. [USD/]
This bolstered agricultural commodities, as a weaker dollar typically makes US products more competitive on the global market, traders said.
(Reporting by PJ Huffstutter; with additional reporting by Michael Hogan in Hamburg, and by Naveen Thukral in Singapore)
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