Chicago agricultural commodities close lower on stronger dollar

Chicago Board of Trade (CBOT) corn retreated on Thursday after gaining fifth successive trading session, and wheat and soybeans also declined as the dollar strengthened.

The most active corn contract for July delivery declined 9.50 cents, or 2.38 percent, to close at 3.90 dollars per bushel. July wheat delivery dropped 11.25 cents, or 2.34 percent to settle at 4.6875 dollars per bushel. July soybeans fell 3.75 cents, or 0.35 percent, to close at 10.715 dollars per bushel.

Corn, wheat and soybeans declined as the U.S. dollar climbed against most major currencies on Thursday amid expectations that Fed may raise interest rates in June's meeting.

The minutes of the Fed's April 26-27 meeting, released Wednesday after the market settled, showed that U.S. Fed officials are open to an interest rate hike in June if the economy continues to improve.

Analysts noted that the minutes boosted U.S. dollar higher, pressing the U.S. agricultural commodities lower as a stronger dollar makes them less competitive in the international market.

The U.S. Department of Agriculture (USDA) released its weekly export sales report Thursday, rating wheat net sales at 175,200 tons till week of May 12, which were down 41 percent from the previous week and 37 percent from the prior 4-week average.

USDA rated corn net sales at 1,473,100 tons ,up 33 percent from the previous week and 13 percent from the prior 4-week average.

As for the soybean sales, the USDA said that soybean net sales were 556,400 tons, up from the previous week and the prior 4-week average. Endit