Chicago corn and soybean futures finished lower on Tuesday amid US dollar strength, while wheat ended mixed.
The American dollar reached its highest since early November, following remarks today from US Federal Reserve Chairman Jerome Powell that progress toward getting inflation under control has slowed, raising further uncertainty about when the Fed may finally be able to cut interest rates. A higher US dollar makes American grain less affordable for overseas buyers, denting export demand.
Monday’s USDA crop progress report also showed a good pace to early 2024 US corn and soybean planting. Corn planting was reported at 6% complete as of Sunday, 1 point ahead of the five-year average, while soybean planting was 2 points ahead of average at 3% complete. The ongoing Brazilian harvest added further pressure to soybeans.
May corn slipped a ½ cent to $4.31, and December lost 2 cents to $4.67 ¼. May soybeans dropped 13 ¼ cents to $11.45, and November was down 8 ¾ cents at $11.58 ½.
The higher dollar also undermined wheat, although some support also came from a lower national winter wheat crop condition rating. Monday’s crop progress report pegged the crop at 55% good to excellent, down a single point from a week earlier. Ratings in Kansas and Oklahoma saw a particularly sharp fall amid recent heat and dryness.
The US spring wheat crop was reported at 7% planted as of Sunday, ahead of 2% last year and 6% on average.
May Chicago wheat fell 2 cents to $5.49 ¾, May Kansas City was up 3 ½ cents to $5.87 ½, and May Minneapolis added 1 ¼ cents to $6.38 ¼.
