U.S. grain prices fell Tuesday amid a stronger U.S. dollar and pressure from advancing U.S. harvests. Soybeans edged higher.
Wheat prices slid, buffeted by an upswing in the U.S. dollar and signs the nation’s spring wheat harvest is ahead of schedule, adding to already ample domestic stockpiles. Prices for the grain dropped as the U.S. dollar rose 0.6% against a basket of international currencies, according to the WSJ dollar index. A firmer dollar makes U.S. exports less attractive and more expensive for overseas buyers.
The drop in wheat prices also followed a weekly government report released in the previous session showing 75% of the U.S. spring wheat crop was harvested as of Sunday, well ahead of the prior five-year average of 47%, the USDA said. Spring wheat is grown mostly in the northern Plains.
Wheat futures for September delivery fell 8 1/4 cents, or 1.6%, to $4.95 a bushel at the Chicago Board of Trade.
Corn prices also dropped, pressured by the lower dollar and beginning harvest progress in the U.S. Delta region. Analysts said the corn harvest in Louisiana, Georgia and Mississippi all had advanced more quickly than normal.
Meanwhile, favorable weather in the U.S. Midwest has helped speed the crop to maturity further north, making more likely an early eastern harvest in the heart of the Corn Belt.
Corn prices also were weighed down by an uptick in farmer selling, analysts said, with U.S. growers marketing last year’s crops ahead of the approaching autumn harvest.
“Guys are getting rid of the old crop corn because they’ve got to clear out bin space for the new crop,” said Dan Manternach, senior economist for Roach Ag Marketing, an agricultural advisory firm.
CBOT September corn shed 3 1/4 cents, or 0.9%, to $3.65 1/2 a bushel.
Soybean prices closed slightly higher, rising off six-year lows notched in the previous session as fears over a global economic meltdown eased somewhat. Prices for the oilseeds tumbled on Monday amid worries a faltering Chinese economy would result in reduced demand from the top buyer of U.S.-grown soybeans.
On Tuesday, however, analysts said investors resumed light buying in the market. Soybean prices also lifted on federal data showing crop condition ratings remained steady last week rather than improving, as analysts had expected.
Rising prices for soyoil, a vegetable oil made from the oilseeds, also supported soybean prices, analysts said.
CBOT September soybeans added 1 1/2 cents, or 2%, to $8.94 1/2 a bushel. Soybean prices on Monday fell to the lowest level since October 2009.
