CHICAGO: Chicago Board of Trade soybean futures fell to a two-year low on Friday and corn also declined as the dollar soared after a much stronger-than-expected monthly US jobs report reduced expectations of near-term Federal Reserve interest rate cuts.

“When that jobs report came out, the US dollar shot up, and that seemed to be the catalyst to turn the grains back down,” said Randy Place, grain analyst with the Hightower Report.

A firmer dollar makes US grains less competitive globally, and higher interest rates tend to dampen economic growth and demand for commodities.

CBOT March soybean futures settled down 14-3/4 cents at $11.88-1/2 per bushel after a late-session dip to $11.86-3/4, the lowest on a continuous chart of the most-active soybean contract since November 2021.

CBOT March corn ended down 4-1/2 cents at $4.42-3/4 per bushel. CBOT wheat closed lower as well after a choppy session, with the March contract down 1-3/4 cents at $5.99-3/4 a bushel.

Soybeans faced additional pressure from poor export demand. US soybean export sales in the week to Jan. 25 totalled just 165,800 metric tons, the US Department of Agriculture (USDA) said on Thursday, the smallest weekly tally since May.

Traders shrugged off concerns about stressful hot and dry weather in Argentina, a major corn supplier and the world’s top exporter of soymeal and soyoil. The Buenos Aires grains exchange said that the high temperatures and lack of rain had led to a deterioration in water conditions, with water stress in some areas.