Soybeans plunge with Trump EPA pick; wheat and corn also fall
Soybeans fall on Trump EPA pick
Wheat dips on stronger dollar
Corn follows soybeans down
Rewrites throughout; updates prices, analyst quotes, byline; changes dateline from CANBERRA/PARIS, adds bullets
By Renee Hickman
CHICAGO, Nov 12 (Reuters) - Chicago soybean futures took a sharp dive on Tuesday as traders worried that President-elect Donald Trump's nominee for the head of the U.S. Environmental Protection Agency would take a less friendly view of the biofuel industry, analysts said.
Wheat futures slipped as a strengthening dollar made U.S. crops less competitive, and corn followed the weak trend.
As of 11:59 a.m. CDT (1759 GMT), benchmark soybean futures Sv1 on the Chicago Board of Trade were down 17 cents a bushel at $10.05-1/4.
CBOT corn Cv1 fell 2 cents to $4.28 a bushel and wheat Wv1 was down 14-1/2 cents at $5.51 a bushel.
The U.S. dollar .DXY rose to a near five-month high against a basket of currencies, pressuring wheat futures, according to Jim Gerlach, president of A/C Trading. A stronger dollar tends to make U.S. exports less attractive to those holding other currencies. USD/
"Wheat is the most sensitive to dollar movement," said Gerlach. Because so many countries export wheat, he said, "when the dollar makes U.S. wheat more expensive, there's always somebody else out there benefiting."
Soybeans dropped as CBOT soyoil futures BOZ24 plunged 4% amid concerns aboutTrump's choice for EPA head, former Congressman Lee Zeldin, according to Arlan Suderman, chief commodities economist at StoneX.
"He does not have a track record of being a supporter of liquid biofuels and actively opposed them in the past," said Suderman. Soyoil is the main U.S. feedstock for biodiesel fuel.
In addition, Gerlach said there were rumors that Indonesia's biofuel mandate , which would raise the country's biofuel blend from 35% to 40%, would be rolled out slower than expected, causing concern about lower demand for soyoil.
Corn was pulled down by the bearish mood for soybeans, said Gerlach, but he noted that demand for the grain remained strong, even as in the cash market, the harvest is winding down.
"I would be careful about getting too bearish on corn," said Gerlach.
Reporting by Renee Hickman in Chicago; additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris; Editing by David Gregorio
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.
