Wheat Futures Lower as Dollar Touches Two Month High
On Friday, the futures for U.S wheat and soybean remained low. It was mainly as the dollar gained strength and reached its highest in the past two months against a broad range of currencies.
The prices cut down losses but the corn futures headed for higher late during the session. The rate spiked partly due to the ending of November options and investor opting for short coverings.
The strong U.S dollar makes the commodities from the United States less attractive in the global markets. Corn and wheat by now have lost their export share to the low costing supplies that come from the Black Sea and South American regions.
Rate cuts in China, which is the world's leading soy buyer also added fears of reduced imports among the commodity investors even though the crushers there still are acquiring large amount of soybeans.
Austin Damiani, analyst at Frontier Futures in Minnesota said, "We're trading the move in the dollar, and that's affecting commodities across the board today. A lot of it, too, is just short-term technical signals."
In the past two days, storms brought the much required rains to dry areas of the southern U.S. That will help the winter wheat belt in the plains to germinate the newly seeded crop according to the agronomists.
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