Sept 22 (Reuters) -
U.S. soybean futures rose on Friday in a light technical rebound from six-week lows while corn and wheat also ticked higher on bargain-buying, but gains in all three markets were limited by a strong U.S. dollar, analysts said.
Chicago Board of Trade (CBOT) November soybeans settled up 2-1/2 cents at $12.96-1/4, bouncing after a drop to $12.92-1/2, the contract's lowest since Aug. 8. Some traders said the market's retreat below $13 signalled potential further weakness.
CBOT December corn ended up 2 cents at $4.77-1/4 a bushel, holding above this week's low of $4.67-3/4, the lowest on a continuous chart of the most-active contract since December 2020.
CBOT December wheat rose 3-3/4 cents to settle at $5.79-1/2, climbing after early weakness.
A firm dollar hung over the markets at a time when U.S. grains are already struggling to compete in the global export market with wheat supplies from Russia and Brazilian corn and soybeans.
"The biggest problem we have right now is demand for American products," said Jim McCormack, a managing partner at AgMarket.net in Barrington, Ill.
"We're just not priced competitively - Russia on the wheat, South America on the corn and beans. The dollar has something to do with it as well," McCormack said.
The dollar index held at a six-month high, lifted by a U.S. Federal Reserve warning that interest rates would remain higher for longer than expected.
However, drought in Argentina and Australia could tighten world wheat supplies later in the season, while war in Ukraine remained a risk to Black Sea trade.
Two grain ships set sail this week from a Ukrainian port on the Black Sea, the first since Moscow quit a deal in July to allow exports, as Kyiv works to break Russia's de facto blockade.
Freshly harvested U.S. corn and soybeans were adding to ample South American supplies, though doubts lingered over U.S. yield potential following dry weather in the Midwest this spring, while farmers in Brazil are facing dry planting conditions. (Reporting by Zachary Goelman in New York City. Additional reporting by Gus Trompiz in Paris, Naveen Thukral in Singapore and Peter Hobson in Canberra; Editing by Alistair Bell and Timothy Gardner)
