PARIS/CANBERRA: Chicago soybean and corn futures eased on Wednesday to three-year lows while wheat fell sharply as a strengthening dollar fuelled export concerns for US crops that face stiff competition from ample global supplies.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was down 0.6% at $11.79-1/2 a bushel by 1102 GMT. It earlier reached $11.75-3/4, the weakest since December 2020 and below a previous three-year low set last week.
CBOT corn was down 0.6% at $4.28-1/4 a bushel after earlier equalling a three-year low of $4.27-3/4 set on Monday. CBOT wheat was 2.1% lower at $5.84-3/4 a bushel after earlier sliding to its lowest in nearly a month at $5.77-1/2.
The US dollar shot to a three-month high against a basket of major currencies on Tuesday after data showed higher-than-expected US inflation in January. The dollar was little changed on Wednesday to hold near that peak.
“The dollar index has risen dramatically, causing US-origin grains and oilseeds to look expensive,” said Andrew Whitelaw at agricultural consultants Episode 3.
Grain prices have been under pressure from improving weather in South American crop belts, which could allow the region to harvest bumper volumes in the coming months and maintain strong export competition for US supplies.
A lull in demand, partly reflecting Lunar New Year holidays in Asia, has contributed to the subdued mood in grain.
The wheat market also remained pressured by falling prices in top exporter Russia and large volumes shipped by Ukraine.
“The lack of significant new activity on the international market continues to weigh on wheat prices,” consultancy Agritel said in an note.
“This is exacerbating the competition between Black Sea and European wheat to sell their excess stocks before the end of the campaign.”
Farm office FranceAgriMer on Wednesday further increased its monthly forecast for French soft wheat stocks at the end of the 2023/24 season, mainly due to the latest cut to expected export demand within the EU.
Comments
Comments are closed for this article.