U.S. grain and soybean futures dropped Tuesday as the U.S. dollar rose and favorable spring planting weather graced the U.S. Midwest.
Wheat prices fell to the lowest level in more than two weeks, buffeted by a firmer dollar and signs that the nation’s winter wheat crop is in good health. The U.S. Department of Agriculture in a weekly report on Monday said about 61% of the U.S. winter-wheat crop was rated good or excellent as of Sunday, up two percentage points from a week earlier.
“It was a bad day for most commodities,” said Jeff Kaprelian of the Hueber Report, a futures brokerage in Sycamore, Ill., adding that “wheat led the grains lower, as it is tough to find a bullish story there” considering Monday’s improved crop ratings.
Wheat futures for delivery in July, the most actively traded contract, fell 17 cents, or 3.5%, to $4.70 3/4 a bushel at the Chicago Board of Trade. May-dated futures, the front-month contract, closed at $4.59 3/4 a bushel, the lowest settlement price since April 15.
A jump in the dollar, which gained 0.7% on Tuesday, weighed heavily on agricultural markets because a higher dollar makes U.S. crops less affordable for international importers, potentially curbing demand.
Corn and soybean prices lowered as largely benevolent weather graced the U.S. Midwest, clearing the way for farmers to plant crops through the weekend. Monday’s USDA report showed corn and soybean seeding is proceeding at a quicker-than- normal pace this spring, fueling hopes for another year of ample domestic output.
Profit taking and sharply lower crude-oil prices also pressured corn and soybean markets.
CBOT July soybeans, the most actively traded contract, fell 13 3/4 cents, or 1.3%, to $10.30 a bushel. Prices for the oilseeds declined for the first in seven sessions.
CBOT July corn, the most actively traded contract, declined 12 cents, or 3.1%, to $3.79 3/4 a bushel. Prices for corn fell for the first in four sessions.
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