September 29, 2009
US soy, corn futures drop on dollar gains from supplies
Soy and corn declined as a gain in the dollar made supplies from the US, the largest shipper of the crops, less attractive to importers and reduced demand from investors seeking a hedge against inflation.
The dollar strengthened against 15 of its 16 major counterparts as economists forecast German consumer prices may have fallen 0.2 percent this month after gaining 0.2 percent in August.
Soy futures for November delivery fell as much as 1.4 percent to US$9.1275 a bushel in after-hours electronic trading in Chicago after earlier advancing as much as 1.2 percent to US$9.3725 a bushel, the highest level since Sept. 21. The most-active contract traded at US$9.13 a bushel.
December-delivery corn on the Chicago Board of Trade fell as much as 0.8 percent to US$3.3125 a bushel, reversing a 2 percent gain, before trading at US$3.325 a bushel.
Soy and corn earlier climbed on concern cold, stormy weather may increase the risk of crop damage in parts of the Midwest, the largest US growing region.
According to weather reports, a powerful storm system and an associated cold front will cross the Great Lakes, bringing strong winds and the risk of hail as it heads east early this week.
