By Ilan Brat
CHICAGO-Prices of wheat futures finished at a fresh low on
Wednesday, as a stronger dollar and an improved outlook for output
pressured prices. Corn prices declined and soybeans were mixed.
Wheat settled at the lowest closing price for a front-month
contract since June 19.
The WSJ Dollar Index, a measure of the dollar against a basket
of major currencies, rose, making U.S. supplies less affordable for
foreign buyers and requiring U.S. prices to decrease to regain
competitiveness. In addition to ample wheat stocks around the
world, an improving outlook for the U.S. wheat crop is weighing on
prices. Concern 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 September wheat contract on the Chicago Board of Trade
closed 14 1/2 cents, or 2.8%, lower at $4.96 1/4 a bushel.
Corn futures also finished down, as traders reconsidered some of
their estimates for corn production. Recent benign weather is
spurring some traders to project 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, a sign
of projected better-than-expected production.
CBOT corn futures for September delivery fell 7 1/4 cents, or
1.9%, to $3.67 3/4 a bushel.
Soybean futures were mixed, as traders balanced strong demand
for soybean meal with the pressure on corn and wheat, which can
often drag down soybeans.
CBOT August soybeans added 8 1/4 cents, or 0.9%, to $9.83 a
bushel. November soybeans shed 1 1/2 cents at $9.43 1/4 a
bushel.
Write to Ilan Brat at ilan.brat@wsj.com
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