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U.S. soybeans slump to 3-week low, wheat falls to 1-week trough

Published 03/05/2015, 06:09 AM
U.S. soybean futures fall to 3-week low
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Investing.com - U.S. soybean futures fell for the fourth consecutive session on Thursday to trade at a three-week low as concerns over Brazilian export prospects eased.

A broadly stronger U.S. dollar also weighed. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.25% to 96.22, the highest level since September 2003.

A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.

On the Chicago Mercantile Exchange, US soybeans for May delivery touched a daily low of $9.9113 a bushel, a level not seen since February 13, before trading at $9.9340 during U.S. morning hours, down 0.4 cents, or 0.05%.

A day earlier, soybean prices lost 18.2 cents, or 1.8%, to end at $9.9400 a bushel as a two-week strike by Brazilian truck drivers appeared to be coming to an end.

Brazilian police said there were only four protests affecting federal highways on Wednesday, down from seven on Tuesday and well below peaks of more than 100 a week ago.

Brazil is a major soybean exporter and competes with the U.S. for business on the global market, which could weigh on demand for U.S. supplies.

Meanwhile, US wheat for May delivery dropped 1.02 cents, or 0.21%, to trade at $4.9438 a bushel after hitting an intraday low of $4.9113, the weakest level since February 26.

On Wednesday, the May wheat contract tumbled 10.0 cents, or 1.98%, to close at $4.9600 a bushel amid ample global supplies and indications of reduced demand for U.S. wheat.

Elsewhere on the Chicago Board of Trade, US corn for May delivery inched down 0.6 cents, or 0.19%, to trade at $3.8860 a bushel. US corn for May delivery shed 1.4 cents, or 0.38%, on Wednesday to settle at $3.8940.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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