CHICAGO: US grains shed about 1 percent on Friday as investors sold off positions on the first day of May amid bearish headwinds of rapid pace of spring plantings and a strong dollar that could limit export prospects.
Chicago Board of Trade corn futures fell to the lowest levels since October while soybeans declined from a three-week high reached in the previous session. Wheat prices were hovering near a roughly five-year low notched on Tuesday.
“The spreads don’t indicate much bullishness,” said Craig VanDyke, analyst at brokerage Top Third Ag Marketing in Chicago. “We have the first of the month and big money is short – they have control of this right now.”
The dollar rebounded from a nine-week low against a basket of currencies. A stabilizing greenback made commodities priced in the currency less attractive in international markets, with U.S. corn and wheat already more expensive in many top export markets in Africa, the Middle East and Asia.
Meanwhile, dry weather and warming temperatures this week provided ideal conditions for fieldwork in the U.S. Midwest and Mississippi River Delta. Analysts expected the U.S. Department of Agriculture on Monday to show corn seedings about halfway complete – roughly on par with average planting progress.
“The market is well aware that we have great weather for planting. We are rolling right along, and we will be wrapped up with planting right on time,” VanDyke said.
Most-active CBOT July corn fell 4-1/2 cents to $3.61-3/4 per bushel and CBOT July soybeans were down 10-1/2 cents to $9.65-1/2 by 11:05 a.m. CDT (1705 GMT). Each contract was headed for a weekly decline.
