GRAINS-Chicago grain, soybean futures slide on profit taking, dollar crashes


By PJ Huffstutter

CHICAGO, November 10 (Reuters)Chicago corn, wheat and soybean futures all fell on Thursday as investors across the board sought to take profits amid global supply issues, even as the U.S. dollar tumbled in the aftermath news that the United States consumer prices have risen less than expected in October, traders said. XRF/

The monthly US inflation reading is closely watched as an indicator of the pace of further interest rate hikes by the US Federal Reserve.

Corn futures also struggled, as reported by the United States Department of Agriculture (USDA). export sales of American corn in the week ended November 3 at 265,300 tons, below a range of business expectations for 300,000 to 650,000 tons.

And the future of agriculture was weighed down by a government report Wednesday, saying U.S. stocks of corn and soybeans will be higher than previously thought as yields of both crops rose from previous estimates, traders said.

Chicago Board of Trade (CBOT) most active wheat contract Wv1 settled down 3 cents at $8.03-1/2 a bushel, after setting a more than two-month low earlier in the session.

CBOT corn CV1 settled 11-1/4 cents to $6.53-1/4 a bushel, while soybeans Sv1 fell 29 cents to $14.23 a bushel.

“Given what’s happening to the dollar today, it’s somewhat surprising, given that the markets are supportive of grains right now,” said Dax Wedemeyer, grain broker and analyst at US Commodities in West Des. Monks, Iowa. “Without some clear strength in the market, there’s just a broad selloff that’s happening.”

Meanwhile, soybean futures slipped in part on a report that Argentina may consider reinstating measures to boost soybean exports, three traders said.

The already depleted reserves of the Argentine central bank are under renewed pressureas the South American nation’s grain exports slowed following a bonanza in soybean sales and a drought hitting wheat and corn.

(Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Savio D’Souza, Shinjini Ganguli and Jonathan Oatis and Diane Craft)

((pj.huffstutter@thomsonreuters.com; 313-484-5275 (w); On Twitter @pjhuffstutter; Reuters Messaging: pj.huffstutter.reuters.com@thomsonreuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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