Wheat eases for sixth day

Dhaka,  Thu,  24 August 2017
Published : 01 Dec 2016, 21:44:09

Wheat eases for sixth day

SINGAPORE, Dec 1 (Reuters): Chicago wheat slid for a sixth session on Thursday, declining to its lowest in almost two weeks, as an improved US weather outlook for winter crops and a firmer dollar weighed on prices.

Soybeans rose for the first time in three sessions as a surge in oil prices lifted commodities, although ample global supply of the oilseed capped gains.

"Wheat export business for the US is slowing because of strong dollar," said Kaname Gokon at Okato Shoji brokerage in Tokyo. "Forecasts of snowfall over the US Plains will help improve conditions for the winter wheat crop." The Chicago Board of Trade most-active wheat contract fell 0.4 per cent to $4.01 a bushel by 0342 GMT, its lowest since November 18's $4.00-1/4 a bushel, having lost 1.5 per cent on Wednesday.

Soybeans climbed 0.5 per cent to $10.37-3/4 a bushel, having closed down 1 per cent in the last session, and corn advanced 0.1 per cent to $3.48-3/4 a bushel, after ending the previous session down 0.1 per cent.

Commodities are facing headwinds from a stronger dollar which makes greenback-priced products expensive for foreign buyers holding other currencies. The US dollar was broadly firm, hitting 9-1/2 month highs against the yen as oil prices surged after OPEC agreed to output cuts - lifting inflation expectations and US bond yields.

Egypt's state grain buyer, the General Authority for Supply Commodities, bought 240,000 tonnes of Russian wheat in a tender on Tuesday. There were no US supplies offered and the strength in the dollar will make things tougher.

Meanwhile, Russia is expected to have another big grain crop in 2017, adding to a record crop this year and increasing pressure on prices, SovEcon, a leading agriculture consultancy, told a conference on Wednesday.

SovEcon said Russia's harvest next year could amount to 112.5 million tonnes - the second largest since the collapse of the Soviet Union - after this year's record 119.5 million tonnes.
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