Wheat futures lost more ground on Wednesday, with corn and soybeans ending in the red as well.
The wheat continued to be weighed down by strength in the American dollar, which makes US supplies more expensive – and thus less appealing - for foreign export buyers. The greenback hit a six-month high today, bolstered by ideas the Federal Reserve may in fact not trim interest rates in December, as was widely expected. The Labor Department today reported the October US inflation rate at 2.6%, up from 2.4% in September. Improving weather for wheat crops around the world, including in the US and Argentina, added to the pressure. December Chicago dropped 11 ¼ cents to $5.41, December Kansas City lost 5 ¾ cents to $5.40 ¾, and December Minneapolis settled 6 ¾ cents lower at $5.71.
Soybeans were undermined by weaker soyoil and mostly good weather for the crops in South America. The stronger US dollar was negative for prices as well. January beans dipped 2 ¾ cents to $10.07 ¾, and March was down 4 cents to $10.18 ½.
Corn was weaker with the losses in wheat and the gains in the greenback. December corn eased 2 cents to $4.26 ½, and March ended 2 ¾ cents lower at $4.37 ½.
