Prices of U.S. grain and soybean futures dropped on Thursday, pressured by a rising U.S. dollar and weak demand for some crops.
Soybean prices led the declines, as strength in the U.S. currency outweighed evidence of strong demand for the U.S. crop. Net soybean sales for the week ended Oct. 15 totaled more than two million metric tons for delivery in the 2015-16 crop year, which was up 43% from the week before and 26% from the previous four-week average, according to the U.S. Department of Agriculture.
The U.S. dollar, which rose 0.7% against a basket of international currencies according to the WSJ Dollar Index, made American exports more expensive for foreign buyers. Reports of better-than-expected U.S. crop-yields and a wave of farmer selling also weighed on the market, as some growers marketed newly-harvested crops to take advantage of prices, which previously gained for two sessions.
“The big story today was the dollar,” said Christian Mayer, a market analyst at Northstar Commodity Investment Co., adding that “soybeans were higher early on and we had very good export sales, but then we fell apart.”
Soybean futures for November delivery sank 6 1/2 cents, or 0.7%, to $8.98 3/4 a bushel at the Chicago Board of Trade.
Corn prices fell, retreating on the sharp gains in the U.S. dollar and weaker-than-expected demand for the crop. The USDA on Thursday said net corn sales last week totaled 248,000 metric tons, missing analyst expectations for 400,000 to 800,000 tons.
“There was nothing good out of wheat or corn” sales, said Mr. Mayer.
Farmer selling and large corn yields also pressured prices for the crop, analysts said.
CBOT December corn futures slid 2 1/2 cents, or 0.7%, to $3.78 1/4 a bushel.
Wheat prices dropped, buffeted by a stronger U.S. currency and lackluster demand for U.S. supplies. Concerns over dryness in key grain-growing regions like the former Soviet Union and Australia stemmed losses, however.
“Russian dryness could still cause pretty big problems with world supply,” said Mr. Mayer.
CBOT December wheat shed 4 cents, or 0.8%, to $4.90 3/4 a bushel.
