Chicago | Reuters — Chicago Board of Trade (CBOT) grain and soybean futures closed lower on Tuesday as the dollar rallied and broad-based selling hit a range of markets, analysts said.
Oil prices also tumbled, pressured by a gloomy economic outlook, while U.S. stocks struggled. Gains in the dollar made U.S. commodities, including farm products, less attractive to importers.
“It’s a negative overall market today,” said Matt Wiegand, commodity broker for FuturesOne. “It’s a risk-off start to the year.”
The most-active CBOT soybean contract ended down 31-3/4 cents at $14.92-1/4 a bushel and touched its lowest price since Dec. 28 (all figures US$). Corn set a one-week low before finishing down eight cents at $6.70-1/2 a bushel. Wheat dropped 16-1/2 cents to close at $7.75-1/2 a bushel.
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.
Profit-taking weighed on futures after the markets posted annual gains in 2022, brokers said.
Euronext wheat also fell as cheaper Black Sea prices dampened export sentiment.
Global traders kept their eyes on Argentina, the world’s largest exporter of soyoil and soymeal, after better-than-expected rains benefited dry areas there over the weekend, analysts said. The weather remains a “mixed bag” because conditions are expected to turn drier again, they said.
Crop stress in northern and eastern Argentina will rebuild to about 60 per cent of the soy and corn area from just under half, Commodity Weather Group said.
“It seems like they get some relief, and then above-normal temperatures,” Wiegand said.
In other news, weekly U.S. grain export inspections were somewhat disappointing, traders said.
The U.S. Department of Agriculture reported inspections in the week ended Dec. 29 were 85,672 tonnes for wheat; 667,010 tonnes for corn; and 1.46 million tonnes for soybeans. Analysts surveyed by Reuters expected 250,000 tonnes to 450,000 tonnes for wheat; 650,000 tonnes to 900,000 tonnes for corn; and 1.5 million to 1.865 million tonnes for soybeans.
— Tom Polansek reports on agriculture and ag commodities for Reuters from Chicago.
