June 15, 2010

US corn, wheat futures dip against strong dollar

US corn futures fell 0.5% on Tuesday (June 15), while wheat went lower after climbing 2.5% to a two-week high in the last session due to a firm dollar and ample grain supplies.

Soy was little changed on tight old-crop supplies in the US although the longer term outlook is bearish with prospects of bumper output from the new crop, analysts said.

Asian stocks slipped, snapping a five-day winning streak, as worries about Europe's debt problems returned after Greece was downgraded to junk status, a move that also stymied the euro's rally.

The dollar index, which measures the strength of the greenback against a basket of currencies, rose 0.2%. A stronger dollar makes dollar-priced commodities expensive for overseas buyers.

The CBOT July soy contract slipped half a cent to US$9.51 a bushel as tight supplies of old-crop beans were supporting the market.

Some 77% of the US corn crop was in good or excellent condition and 73% of soy was also rated good or excellent at the start of this week.