Chicago wheat futures fall to 10-week low on firm dollar
Updates prices throughout, adds context in paragraphs 6-7
LONDON/CANBERRA, Nov 13 (Reuters) -Chicago wheat futures fell to a 10-week low on Wednesday after the U.S. dollar surged to its strongest level in more than six months while corn and soybean prices were little changed.
The most-active wheat contract on the Chicago Board of Trade Wv1 was down 0.6% at $5.49 a bushel at 1151 GMT after falling to $5.45-1/4, lowest since Sept. 3.
The dollar .DXY scaled a 6-1/2-month high against a basket of currencies, making greenback-priced U.S. crops less attractive to overseas buyers holding other currencies. USD/
Wheat has trended lower in the recent weeks as rain eased dry conditions in the U.S., the Black Sea and Argentina, where harvest is getting underway. Meanwhile, dry weather improved the sowing conditions in waterlogged Western Europe.
Prices are nearing July's four-year low of $5.14-1/2 but dealers said the scope for further losses appeared limited.
Winter wheat sown areas in Russia, the world's top exporter, will shrink to 15.4 million hectares in the 2025-2026 season, the lowest since the 2018-2019 season, Igor Pavensky, an expert at Russian grain carrier Rusagrotrans, said on Wednesday.
Farm office FranceAgriMer also on Wednesday cut its forecast for French soft wheat exports in 2024/25, with total shipments now expected to plunge 40% this season after one of the country's worst harvests in 40 years.
Vitor Pistoia, an analyst at Rabobank in Sydney, also cited low wheat inventories among factors underpinning wheat prices.
"I would expect prices to be close to $6, not somewhere close to $5."
In other crops, CBOT soybeans Sv1 rose by a marginal 0.05% to $10.11 a bushel and corn Cv1 was 0.1% higher at $4.29 a bushel.
Reporting by Nigel Hunt in London and Peter Hobson in Canberra; Editing by Sumana Nandy, Philippa Fletcher
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.
