Chicago agricultural commodities close lower

Chicago Board of Trade (CBOT) grains futures settle lower on Wednesday in technically driven trade as investors squared positions toward the end of the year and the dollar firmed.

The most active corn contract for March delivery fell 6.75 cents, or 1.9 percent, to 3.4825 dollars per bushel. March wheat delivery dropped 8 cents, or 1.95 percent, to 4.015 dollars per bushel. January soybeans fell 7.75 cents, or 0.76 percent, to 10.165 dollars per bushel.

In the outside markets, the Brent crude oil market is 0.34 dollar per barrel higher, the U.S. dollar is higher, and the Dow Jones Industrials are 93 points lower.

All three markets retreated after rising a day earlier due in part to worries about dry conditions stressing corn and soybeans in portions of Argentina and northern Brazil.

A typical drop in trader participation between the Christmas and New Year's Day holidays was likely contributing to gyrations in grain prices this week.

Jack Scoville, The PRICE Futures Group's Senior Market Analyst, says that there are a couple of disagreeing forecasts out there for northern Brazil that the trade is eyeing.

"One says hot and dusty, the other is less threatening. Very thin market conditions again today, a lot of guys who bought the break were trying to use the rally to sell out and take some profits," Scoville says.

A stronger dollar added to bearish sentiment, theoretically making U.S. grains less attractive to holders of other currencies. The dollar index rose on concerns over next year's Brexit negotiations and expectations of higher U.S. economic growth. Endit