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GRAINS-Chicago wheat futures fall to 10-week low on firm dollar
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GRAINS-Chicago wheat futures fall to 10-week low on firm dollar
Nov 13, 2024 5:52 AM

(Updates prices throughout, adds context in paragraphs 6-7)

LONDON/CANBERRA, Nov 13 (Reuters) - Chicago wheat

futures fell to a 10-week low on Wednesday after the U.S. dollar

surged to its strongest level in more than six months while corn

and soybean prices were little changed.

The most-active wheat contract on the Chicago Board of Trade

was down 0.6% at $5.49 a bushel at 1151 GMT after falling

to $5.45-1/4, lowest since Sept. 3.

The dollar scaled a 6-1/2-month high against a basket

of currencies, making greenback-priced U.S. crops less

attractive to overseas buyers holding other currencies.

Wheat has trended lower in the recent weeks as rain eased

dry conditions in the U.S., the Black Sea and Argentina, where

harvest is getting underway. Meanwhile, dry weather improved the

sowing conditions in waterlogged Western Europe.

Prices are nearing July's four-year low of $5.14-1/2 but

dealers said the scope for further losses appeared limited.

Winter wheat sown areas in Russia, the world's top exporter,

will shrink to 15.4 million hectares in the 2025-2026 season,

the lowest since the 2018-2019 season, Igor Pavensky, an expert

at Russian grain carrier Rusagrotrans, said on Wednesday.

Farm office FranceAgriMer also on Wednesday cut its forecast

for French soft wheat exports in 2024/25, with total shipments

now expected to plunge 40% this season after one of the

country's worst harvests in 40 years.

Vitor Pistoia, an analyst at Rabobank in Sydney, also cited

low wheat inventories among factors underpinning wheat prices.

"I would expect prices to be close to $6, not somewhere

close to $5."

In other crops, CBOT soybeans rose by a marginal 0.05%

to $10.11 a bushel and corn was 0.1% higher at $4.29 a

bushel.

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