Australian wheat futures lose ground on strong currency

Australian wheat futures lost ground Thursday (April 2), weighed down by a strengthening Australian currency, according to Garry Booth of MF Global Australia Ltd.

The nearby ASX May wheat futures contract settled A$4.70 lower at A$278.30 a tonne, it's lowest point since December and down from above A$300 early in February. ASX January 2010 lost A$5.50 to settle at A$288.50/tonne.

Around 0640 GMT, the Australian dollar traded at US$0.7046, up from Thursday's low around US$0.6920 and from US$0.6870 Wednesday.

A subdued US wheat market Wednesday, which saw Chicago Board of Trade May wheat lose 7.25 cents to close at US$5.255 a bushel, also weighed on ASX wheat, Booth said.

"We've had a bit of short sharp rise in the Aussie (dollar) which has put a bit of pressure on the market," Booth said by telephone. "While the Aussie dollar continues on its upward path, it will continue to pressure domestic grain export prices."