Chicago agricultural commodities closed lower

Chicago Board of Trade agricultural commodities closed higher on Tuesday with corn, wheat and soybeans falling on stronger dollar and lower oil prices.

The most active corn contract for March delivery fell 3.25 cents, or 0.83 percent, to close at 3.88 U.S. dollars per bushel. Soybeans for March delivery dropped 9.5 cents, or 0.97 percent, to 9.69 dollars per bushel. Wheat for March delivery lost 8 cents, or 1.51 percent, to 5.2175 dollars per bushel.

Firmer U.S. dollar, weaker oil prices, and favorable weather conditions put pressure on the three major commodities, offsetting the support of a U.S. Department of Agriculture February crop report showing increasing demand for U.S. soybeans and for the U.S. ethanol corn grind.

However, analysts believed that U.S. grain and soybean would decrease as the South American harvest begins and demand for U.S. grain and soybeans falls.

Investors are still waiting for the USDA Outlook Forum's 2015/ 2016 balance sheets to gauge long term price trends. Analysts said that a rise in net production is expected in South America, while U.S. corn and soybean use could be lifted 10 to 25 million bushels. No change is expected in the U.S. wheat balance sheet.

The South American weather forecast calls for steady light showers across the whole of Brazil through the next ten days. This will favor agricultural areas in Brazil. Endite