SINGAPORE- Chicago wheat futures slid for a seventh consecutive session, dropping to a near four-week low, as a stronger dollar dented US export prospects.
Soybeans were little changed after hitting a two-month low earlier in the session on fears that a rapidly spreading coronavirus will reduce demand from top oilseed importer China.
“The stronger greenback is challenging for wheat prices,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
US wheat is already facing stiff competition from suppliers in the Black Sea region and Europe.
Against a basket of currencies, the dollar index rose 0.1 percent. A stronger dollar makes US commodities expensive for buyers holding other currencies.
The most-active wheat contract on the Chicago Board of Trade lost 1 percent to $5.48-1/2 a bushel, after dropping earlier in the session to its lowest since Jan. 8 at $5.47 a bushel.
Soybeans were unchanged at $8.72-1/2 a bushel after falling to $8.71 a bushel, the weakest since Dec. 3, while corn lost 0.3 percent to $3.80 a bushel.
China’s central bank unexpectedly lowered the interest rates on reverse repurchase agreements by 10 basis points, as authorities stepped up measures to relieve pressure on the economy from the rapidly spreading virus outbreak. – Reuters
