CANBERRA- Chicago wheat futures fell on Monday as a steadying of the US dollar and an abundant supply outlook prompted investors to renew their bearish stance.
Wheat’s declines were a reversal of fortunes after a rapidly weakening US dollar and strong US wheat exports lifted prices last week.
Corn and soybean futures also fell on Monday as expectations of ample supply reasserted themselves after concerns that dry, hot weather would damage US crops lifted prices last week.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.5 percent at $5.81-1/2 a bushel, while CBOT corn fell 0.9 percent to $4.20-1/4 a bushel and soybeans dipped 1.2 percent to $11.16-1/4 a bushel.
Strong supply outlooks are holding all three contracts near their lowest since 2020.
Wheat is under pressure from ongoing harvests in the northern hemisphere bringing new supply onto the market.
Weather conditions have improved in major exporters Russia, the United States and Canada in recent weeks, and an abundance of corn is also dragging on wheat prices, said Vitor Pistoia, an analyst at Rabobank in Sydney.
Wheat and corn prices are linked because both can be used as animal feed. US and Brazilian farmers are holding corn back from the market in the hope of better prices, leading to increased stockpiles, Pistoia said.
“Prices have probably found a floor,” he said. “But if corn goes down it will drag wheat down too.”
