US soy, corn futures decline on stronger dollar, tighter competition

 

 

Soy and corn declined in Chicago as the dollar strengthened, reducing the appeal of US crops amid rising competition from South American exports.

 

Soy for May delivery lost as much as 0.3% to US$9.3275 a bushel on the CBOT before trading at US$9.3475 a bushel at 10:05 a.m. London time. May-delivery corn fell as much as 0.4% to US$3.4425 a bushel.

 

The dollar gained 0.4% against a basket of six currencies. The volume of soy scheduled for export inspected at US ports fell 47% to 16.245 million bushels in the week ended April 1 from a week earlier, USDA said.

 

According to analysts, changes in the value of the dollar affect the competitiveness of the US exports on the world market.

 

The combined soy harvests in Brazil and Argentina, the world's biggest exporters of the oilseed after the US, were forecast to jump 35% to 120 million tonnes this year, from a year earlier, the USDA said March 10.

 

The volume of corn scheduled for export inspected at US ports was little changed at 39.376 million bushels in the week to April 1 from 39.561 million bushels, the USDA said.

 

Meanwhile, exports of the grain from Argentina and Brazil, also the world's largest shippers after the US, were forecast to jump 28% to 20 million tonnes this year, the USDA said March 10. Together, the two South American nations account for 24% of global trade, while the US supplies 56%.

 

About 33% of Argentina's corn crop has already been collected and the pace of harvesting the remaining crop will be determined by the weather, analysts said. The nation was forecast to expand output by 53% to 20 million tonnes this year, from a year earlier, they said.

 

Corn futures may range at US$3.20-4.20 a bushel throughout the year, barring any exceptionally damaging weather event.

 

The weather will also determine if US farmers will be able to expand planting by 2.32 million acres to 88.8 million acres this year, as forecast by the USDA, they said.

 

Expanded planting may boost the next US corn harvest to 13.3 billion bushels, the analysts said. The nation harvested a record 13.151 billion bushels in the year that began Sept. 1, the USDA said January 12.

 

Wheat for July delivery fell 0.3% to US$4.66 a bushel. Global stockpiles of wheat were forecast to jump 19% to 196.8 million tons this year from a year earlier as output exceeds demand for a second year, the USDA said earlier.