June 5, 2008

US grains falter as stronger dollar dims export prospects

US grains fell on Tuesday (June 3, 2008) as a stronger US dollar discouraged exports.

The US corn also confronted additional pressure after Tyson Foods announced that it would cull about 15,000 chickens exposed to a mild strain of bird flu in Arkansas.

CBOT wheat futures were further pressured on Tuesday after rains in Australia's New South Wales allowed planting of the crop.

Expectations of bumper wheat crop weakened prices at the CBOT by more than 40 percent since peaking at US$13.34-1/2 a bushel on February 27.

Meanwhile, soy futures rose higher amid rising concerns over delays in the pace of seeding the US crop, but a slump in crude oil futures took the market lower.

The USDA said that 52 percent of the US soy crop was seeded as of Sunday, well behind the five-year average pace of 67 percent.