News
21.01.2010
Wheat Falls to Two-Month Low on U.S. Export Slide, Dollar Gain
Wheat futures fell for a fourth day and to a two-month low after the weekly quantity of U.S. grain inspected for export fell to the lowest since June and as a stronger dollar made U.S. supplies less attractive.
Wheat for March delivery fell 1.4 percent to $4.935 a bushel in electronic trading on the Chicago Board of Trade at 2:14 p.m. Paris time. That’s the lowest price since Nov. 2.
U.S. Department of Agriculture officials inspected 9.4 million bushels of wheat for export in the week ended Jan. 14, down 24 percent from a week earlier and the lowest level since the year that started June 1.
“The weekly inspection number turned out to be at a low level, 260,000 tons, below expectations,” French farm adviser Offre et Demande Agricole said in a report today.
The U.S. Dollar Index, a measure of the currency against six counterparts, rose 0.9 percent to 78.208, the highest level since Dec. 22. The gain makes buying supplies from the U.S. less appealing to purchasers holding other currencies.
“The stronger U.S. Dollar Index should keep the wheat market under pressure on ideas that already dismal export demand could slow even further,” said Darin Newsom, a senior analyst at DTN, in a report.
Milling wheat for March delivery traded on Liffe in Paris slipped 0.2 percent to 125.50 euros ($177.97) a metric ton at 2:19 p.m. local time.
Corn for March delivery traded in Chicago slipped 1.1 percent to $3.6525 a bushel, declining for a seventh day, while soybean futures shed 0.7 percent to $9.565 a bushel.
Bloomberg
