June 17, 2010
CBOT wheat drops on concerns over stronger US dollar
Wheat futures declined on speculation that a rally to one-month high and a stronger dollar may erode demand for US supplies.
Soy futures also dropped after touching a one-week high.
Wheat futures on the Chicago Board of Trade lost 0.5% after yesterday (Jun 16) touching the highest level for the most active contract since May 13 as wet weather disrupted field work in the US Midwest and Great Plains. Soy fell 0.5% after climbing to the highest level since June 8.
''It's just a technical correction against recent gains,'' Takaki Shigemoto, an analyst at research and investment company JSC Corp. said.
Wheat for September delivery fell as much as 2.25 cents to US$4.7425 a bushel, and traded at US$4.7475 at 2:15 p.m. Singapore time. Before today (Jun 17), futures had gained 11% in the past five days.
The grain rose 2% yesterday, supported by Canadian wet-weather concerns, harvest delays in parts of the US and news that Saudi Arabia is in the market for nearly one million tonnes of high-protein wheat, Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a daily note.
The rain may also delay soy planting that the US government said was 91% complete on June 13. Winter-wheat harvesting was 9% finished, less than the five-year average of 12% for this time of year, the data show.
