Wheat gives back some gains as U.S. dollar steadies
CANBERRA, July 8 (Reuters) -Chicago wheat futures fell on Monday as the U.S. dollar rose, reversing the dynamic of last week when a weakening dollar and strong U.S. wheat exports pushed prices higher.
Corn and soybean futures also slipped, with traders turning bearish again after concerns that dry, hot weather would damage U.S. crops lifted prices last week.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade (CBOT) Wv1 was down 0.7% at $5.86-1/4 a bushel by 0049, while CBOT corn Cv1 fell 0.4% to $4.22-1/4 a bushel and soybeans Sv1 dipped 0.8% to $11.20-3/4 a bushel.
* Prices of all three have rebounded slightly in recent days but wheat remains near two-month lows and corn and soybeans near their lowest since 2020 amid ample supply.
* The U.S. dollar weakened rapidly last week due to expectations of interest rate cuts. A weaker dollar makes U.S. farm goods more affordable for buyers with other currencies, which can improve demand. USD= FRX/
* U.S. Department of Agriculture data showed U.S. wheat export sales in the week ended June 27 at 805,300 metric tons for 2024/25, well above trade estimates.
* Also supporting wheat were forecasts for low French production. This year's soft wheat harvest in France could see yields at an eight-year low and 11% below the 10-year average because of wet weather, crop institute Arvalis and grain industry group Intercereales said.
* Weather models showed drier weather for the U.S. Midwest and for the Black Sea region, the world's biggest wheat export hub, according to brokers StoneX.
* Commodity funds were net buyers of CBOT corn, wheat, soyoil, soybeans and soymeal on Friday, traders said.
* Speculators hold net short positions in wheat, corn and soybeans, making those markets vulnerable to bouts of short covering that push up prices.
MARKETS NEWS
* Asian stocks inched higher on Monday as investors grew more confident about a September U.S. rate cut, while the euro grappled with political uncertainty as French elections pointed to a hung parliament. MKTS/GLOB
Reporting by Peter Hobson; Editing by Mrigank Dhaniwala
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
