By Ilan Brat
CHICAGO--Wheat futures notched a fresh low as a strengthened
dollar and estimates for bolstered U.S. production pressured
prices.
Corn declined and soybeans rose.
Wheat prices lost ground Wednesday amid a rise in the dollar,
which makes U.S. supplies less affordable for foreign buyers and
requires U.S. prices to decrease to regain competitiveness. The WSJ
Dollar Index, a measure of the dollar against a basket of major
currencies, was up 0.1% in midday trade. Wheat stocks also are
ample globally and this year production is expected to remain
heavy. Concerns that heavy rains early in the summer could have
damaged the U.S. wheat crop are easing with recent favorable
weather, analysts said, brightening the outlook for output.
The strong dollar "is putting a huge crimp on our exports," said
Brian Grossman, a market strategist at Chicago-based brokerage
Zaner Group. And at the same time, "we have a lot of wheat in
general in the world and harvest pressure is helping drive us down
right now."
The September wheat contract on the Chicago Board of Trade shed
14 cents, or 2.7%, at $4.96 3/4 a bushel. That was after it hit the
lowest price for a front-month contract since June 22.
Corn futures also fell amid traders reconsidering some of their
estimates for corn production. The extremely wet June and early
July in some parts of the country threatened to damage the corn
crop. But benign weather in recent weeks is spurring some traders
to reevaluate their projections for the crop. Some think that the
U.S. Department of Agriculture, in its next report on the crop's
estimated output, is unlikely to cut its yield estimates as much as
many believe, Mr. Grossman said.
"With the improved weather conditions, there's talk that the
USDA won't be cutting yields as much as a lot of people were
looking for," Mr. Grossman said.
CBOT corn futures for September delivery fell 5 3/4 cents, or
1.5%, to $3.69 1/4 a bushel.
Soybean futures were higher, partially pulled up by soybean
meal, which has seen strong demand.
CBOT August soybeans added 8 1/4 cents, or 0.9%, to $9.83 a
bushel.
Write to Ilan Brat at ilan.brat@wsj.com
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