Wheat futures on the Chicago Board of Trade fell Friday on strength in the dollar, which makes US commodities less competitive globally, and on expectations of deliveries next week against the spot December contract, traders said. The dollar hit an eight-month high against a basket of currencies as speculation the Swiss National Bank could cut deposit rates further pushed major competitors lower.
In a holiday-shortened session, CBOT December wheat fell 13-1/2 cents, nearly 3 percent, to settle at $4.65-3/4 a bushel and lost ground to back months on spreads. CBOT December pressured by expectations of deliveries on Monday, which is first notice day for the contract. K.C. hard red winter and MGEX spring wheat futures also closed lower but trailed the declines in CBOT wheat.
USDA reported export sales of US wheat in the week ended November 19 at 303,700 tonnes, below trade expectations for 400,000 to 600,000 tonnes. Political tension between Russia and Turkey has stalled wheat deals between the two countries and created uncertainty about existing agreements, traders said on Thursday. US wheat is expected to continue trading around current levels in 2016, as weather-related risks are counter-balanced by currency weakness in some producer countries, Rabobank said in a report on Friday.
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