CBOT wheat hits 2-month low on dollar strength, harvest pressure
- The U.S. Department of Agriculture reported export sales of U.S. wheat in the week ended June 10 at 287,100 tonnes, in line with trade expectations for 200,000 to 500,000 tonnes.
CHICAGO: Chicago Board of Trade wheat futures fell more than 3pc on Thursday, following broad weakness in commodities along with a sharply higher U.S. dollar and seasonal pressure from the winter wheat harvest, traders said.
Spillover weakness from steep declines in corn, soybeans and other commodities such as crude oil and gold added to bearish sentiment.
CBOT July soft red winter wheat settled down 23-3/4 cents, or 3.6pc, at $6.39 per bushel after dipping to $6.37-1/4, the contract's lowest since April 14.
K.C. July hard red winter wheat ended down 25-1/2 cents at $5.85-1/4 a bushel and MGEX July spring wheat fell 9 cents to finish at $7.51-1/4.
MGEX spring wheat futures drew underlying support from hot and dry weather that has stressed spring wheat crops in the northern U.S. Plains.
The dollar index set a two-month high against a basket of currencies, in theory making U.S. grains less competitive globally.
The U.S. Department of Agriculture reported export sales of U.S. wheat in the week ended June 10 at 287,100 tonnes, in line with trade expectations for 200,000 to 500,000 tonnes.
Analyst APK-Inform lowered its forecast of Ukraine's 2021 wheat crop to 27.264 million tonnes, from 27.622 million previously, tonnes but kept its export outlook unchanged at 19.75 million tonnes.
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