US wheat, corn futures slide as stronger dollar may hurt exports

Wheat fell for a fifth day in CBOT on speculation that a stronger dollar may hurt demand for US grain from importing nations, while corn declined for an eighth session in a row.

The US Dollar Index, a six-currency gauge of the strength of the greenback, rose for a third day, adding as much as 0.6% to the highest level since September. Gains by the dollar make raw materials priced in the currency more expensive for holders of other monies.

''US wheat is sliding with the strong recovery of the dollar,'' French farm adviser Offre et Demande Agricole said in a market comment. Prices dropped yesterday as figures showed that the US last week inspected the lowest weekly volume of wheat for export since June, stoking concern about slack demand.

Wheat for March delivery fell as much as 0.8% to US$4.9375 a bushel on the Chicago Board of Trade. The contract was at US$4.9475 earlier. Milling wheat for delivery in March traded on Liffe in Paris rose 0.6% to EUR126.50 (US$177.50) per tonne.

Corn for March delivery shed as much as 0.7% to US$3.655 a bushel in Chicago and was last at US$3.6775.

According to USDA, world corn output may reach a record 31.4 billion bushels in the year ending September 30 as the US harvest, the world's largest, jumps 8.8%.

Meanwhile, soy futures rose from the lowest price since October on speculation that a 9.4% slump this year through yesterday may attract importers and investors.

Futures for March delivery added as much as 0.9% to US$9.5825 a bushel and were recently at US$9.55. Previously, the oilseed touched US$9.4075, the lowest price for the most-active contract since October 9.

On Thursday, soy futures had dropped in nine of this year's 12 sessions on speculation that rains in Brazil and Argentina may boost global output forecast by the USDA last week to rise to a record 253.4 million tonnes this year.