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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