Grains started the week higher trying to make 3 days in a row of advancing prices. In outside markets, crude oil was modestly higher while the US dollar index was holding solid gains going into the morning trade session.
Corn and soybean futures rose for a third consecutive session on Monday, with prices underpinned by short-covering and strong demand. Malaysian palm oil surged to its highest level in about six months Monday, gaining on forecasts of weaker production growth for the month of October. In the last two sessions, palm oil prices have rallied 5.7 percent which has helped the soy complex as well.
Saudi Arabia's main state wheat buying agency, the Saudi Grains Organization (SAGO), said on Monday it purchased 610,000 MT of hard wheat in a tender. The accepted origins in the tender were the European Union, North and South America and Australia, at the seller's option.
Baker Hughes showed U.S. drillers added four rigs in the week to Oct. 14. It was the 16th week in a row that oil drillers had gone without making cuts, indicating more production to come. A firmer dollar also weighed on prices, as an expected hike in U.S. interest rates later this year drove the U.S. currency to a seven-month high against a basket of currencies.
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