Soybeans, wheat and corn pushed down by strong dollar. February 5, 2024

Chicago wheat, corn and soybeans fell on Monday, with soy hitting 24-month lows, as dollar strength and lackluster global import demand weakened sentiment.

Dollar strength makes U.S. supplies more expensive in export markets at a time of weak demand, especially for wheat.

The Chicago Board of Trade’s most active soybean contract Sv1 fell 0.2% to $11.85-3/4 a bushel by 1215 GMT. Soybeans earlier touched their lowest since November 2021 at $11.83-1/4 a bushel, below two-year lows hit on Friday.

Wheat Wv1 fell 1.2% to $5.92-1/2 a bushel while corn Cv1 slipped by 0.6% to $4.39-1/4 a bushel.

The dollar rose to eight-week highs against major currencies and new grain import tenders were scarce, with only Iran in the market. USD/GRA/TEND

“The stronger dollar is bad news for U.S. export sales of wheat, corn and soybeans and is generating weakness across grains and soybeans today,” said Matt Ammermann, StoneX commodity risk manager.

“Overall Northern Hemisphere weather is not generating major threats to crops, which also adds weakness.”

Rain is forecast in Argentina after fears over dry conditions.

“For wheat, cheap Russian wheat continues to dominate export markets,” Ammermann said. “Russian FOB prices have started the week below the $230 a ton level and the next question is whether Russian wheat will fall below $220.”

“As Russia has yet to achieve its required export program to clear inventories ahead of the new crop, it seems there is a likelihood of fresh lows in Russian wheat prices.”

More grain ships diverted around South Africa last week after attacks on Red Sea shipping.

Tags: импорт, corn, prices, soybeans, Grains, wheat, markets