Chicago | Reuters — Chicago Board of Trade soybean futures fell on Thursday on concerns that a firm dollar and a weakening global economy could slow the robust pace of exports that has supported prices since harvest, traders said.
Wheat futures were strong on a round of bargain buying following declines in eight of the 10 previous sessions and pulled corn higher.
But those gains were limited by the U.S. Federal Reserve’s guidance on Wednesday that raised concerns that inflation could remain high and more interest rate increases would hamper economic growth throughout 2023.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
The Bank of England similarly pointed to more possible rises as it also increased rates on Thursday, ahead of a European Central Bank rate policy decision.
“The bottom line is that this keeps traders viewing commodity fundamentals through the lens of recession fears,” StoneX chief commodities economist Arlan Suderman said.
Chicago Board of Trade January soybean futures settled 8-3/4 cents lower at $14.73-1/2 a bushel (all figures US$).
“I think the hundred-point rally in the U.S. dollar is weighing a little bit on beans,” said Terry Reilly, senior commodity analyst with Futures International in Chicago. “They have been the leader for exports of all the CBOT commodities.”
The U.S. Agriculture Department said on Thursday morning that export sales of soybeans totaled 2.943 million tonnes in the week ended Dec. 8. That was up 69 per cent from a week earlier and above the high end of trade forecasts that ranged from 1.5 million to 2.6 million tonnes
CBOT March soft red winter wheat gained eight cents to settle at $7.57-1/4 a bushel and CBOT March corn rose three cents to $6.53-1/2 a bushel.
Drought damage to Argentina’s wheat crop was also a concern, although continuing flows of Russian and Ukrainian supplies were capping international prices, traders said.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
