Stronger US dollar weighs on corn prices

Corn prices fell on speculation a stronger dollar may weaken demand for commodities and at the same time, pending crop estimate from the US weighed on investor confidence.

''The stronger dollar is behind weaker grains,'' said Han Sung Min, a broker at Korea Exchange Bank Futures Co. in Seoul. ''In addition, some investors are squaring ahead of a US government report.''

Corn futures for May delivery fell as much as 2 cents, or 0.5%, to US$3.67 a bushel, the lowest since February 19 and traded at US$3.68 a bushel on the Chicago Board of Trade at 12:20 p.m. Seoul time Tuesday (Mar 9). The most-active contract dropped 2 percent so far this week.

Soy for May delivery slid as much as 0.2% to US$9.4525 a bushel and last traded at US$9.4725. Futures reached US$9.35 yesterday, the lowest price for a most-active contract since February 10. Prices have fallen 9.6% this year on US forecasts for production in Brazil and Argentina to increase 34%.

Wheat for May delivery lost as much as 0.9% to US$4.8525 a bushel and last traded at US$4.8675.