CANBERRA- Chicago wheat futures fell on Tuesday as the US dollar strengthened, but prices remained near Friday’s four-month high as cold weather threatened crops in the Black Sea and US Plains regions.
Corn and soy futures also slipped.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1 percent at $5.94-1/4 a bushel after a burst of short covering pushed the contract to $6.03 on Friday, its highest since October 11.
CBOT corn fell 0.5 percent to $4.94 a bushel after rising to $5 on Friday for the first time since October 2023.
Soybeans slipped 0.9 percent to $10.26-3/4 bushel, having drifted from a 6-1/2-month high of $10.80 earlier this month.
Corn and wheat supply is expected to tighten in the coming months but soybeans are projected to be more plentiful.
Also supporting prices are relief that US President Donald Trump has not yet unleashed tariffs on agricultural trade and a weakening US dollar, though that weakening halted on Tuesday.
A lower dollar makes US farm exports more competitive.
The rallies have got ahead of themselves, said Ole Houe, director of advisory services at IKON Commodities in Sydney.
“The physical market overseas is not following this rally. I suspect prices will fall over the next couple of days,” Houe said, adding that there was enough fundamental support that not all recent gains would be lost.
