Off the wire
• HIV positive mothers' mixed feeding dangerous for children: UN official  • U.S House Republicans nominate Paul Ryan to be next Speaker  • Portuguese parliament to vote on gov't program on Nov. 10  • Britain to send museum experts to help protect Iraqi heritage  • Chinese IT giant offers smart grid solution to power companies in Africa  • Chinese language competition held in Ethiopia to strengthen cultural exchanges  • Austrian tourism industry records best summer season in over two decades  • Austria debates tighter border controls, potential construction of fence  • Lithuania improves position in World Bank Doing Business index  • European Parliament firmly rejects GMO ban proposal  
You are here: 　 Home

Chicago corn, wheat, soybean lower on stronger U.S. dollar, improving weather

Xinhua, October 29, 2015 Adjust font size:

Chicago Board of Trade(CBOT) corn, wheat and soybean futures closed lower across the board Wednesday as the U.S dollar regained its footing, weighing on the dollar-denominated agricultural commodities, and the weather in the Midwest improved.

The most active corn contract for December delivery shed 4 cents, or 1.05 percent, to close at 3.76 U.S. dollars per bushel. December wheat delivery lost 3.25 cents, or 0.64 percent, to close at 5.06 dollars per bushel. January soybeans dropped 8.25 cents, or 0.93 percent, to close at 8.8275 dollars per bushel.

The greenback showed weakness in morning trading Wednesday amid expectations that the Fed in its policy statement will sent some signals indicating the U.S. central bank is not likely to raise interest rates this year. However, the dollar started surging after the announcement showed the Fed still kept the door open for a rate hike at its December meeting.

Generally, increasing interest rates would send the U.S. dollar higher. Analysts noted a stronger U.S. dollar can be a negative for agricultural commodities, priced in U.S. dollars because it makes them more expensive for non-dollar users, while a weaker dollar can support commodities.

Chicago corn and soybean futures were also pressured by speculation that farmers will wrap up the harvest earlier than normal thanks to persistent dry weather.

Wheat prices fell back from its nearly 3-week highs as rainfall in the U.S. Midwest benefited newly planted crops, easing concerns over previously dry soil conditions.

The weekly ethanol production report released by the U.S. Energy Information Administration Wednesday showed a modest drop in production and in inventories, which was seen as neutral to corn futures. U.S. ethanol production through the week ending Oct. 23 was down 0.7 percent from the prior week to 944,000 barrels per day.

The amount of corn that U.S. ethanol producers used last week was still lower than the pace needed to meet the forecast of the U.S. Department of Agriculture in 2015/16 marketing year, while U.S. ethanol stocks fell to the lowest level in nearly a year, according to analysts. Endit