GRAINS-Soy and corn back at 3-year lows, wheat drops as dollar adds pressure
PARIS/CANBERRA, Feb 14 (Reuters) – Chicago soybean and corn futures eased on Wednesday to three-year lows while wheat fell sharply as a strengthening dollar fuelled export concerns for U.S. crops that face stiff competition from ample global supplies.
The most-active soybean contract on the Chicago Board of Trade (CBOT) Sv1 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 Cv1 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 Wv1 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 U.S. dollar .DXY shot to a three-month high against a basket of major currencies on Tuesday after data showed higher-than-expected U.S. inflation in January. The dollar was little changed on Wednesday to hold near that peak. FRX/
“The dollar index has risen dramatically, causing U.S.-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 U.S. 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.
Prices at 1102 GMT
Last
Change
Pct Move
CBOT wheat Wv1
584.75
-12.75
-2.13
CBOT corn Cv1
428.25
-2.50
-0.58
CBOT soy Sv1
1179.50
-6.75
-0.57
Paris wheat BL2c1
207.75
-1.25
-0.60
Paris maize EMAc1
176.25
-1.25
-0.70
Paris rapeseed COMc1
421.25
-3.75
-0.88
WTI crude oil CLc1
78.05
0.18
0.23
Euro/dlr EUR=
1.07
0.00
-0.06
Source Link: https://www.nasdaq.com/articles/grains-soy-and-corn-back-at-3-year-lows-wheat-drops-as-dollar-adds-pressure
