Corn, wheat fall as dollar's gain curbs demand for US crops
Tuesday, 22 December 2009
TOKYO, Dec 21 (Bloomberg): Corn and wheat declined as the dollar traded near the highest in more than three months, eroding the appeal of US supplies. Soybeans climbed.
Grains fell as the dollar traded near a three-month high against the euro as signs that the world's largest economy is gaining traction and lingering credit concerns in Europe buoyed demand for the greenback. A rise in the dollar reduces demand for US crops from overseas buyers holding other currencies.
"In the pre-holiday trading, the dollar will set the direction for grains and other commodities," said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co.
Grains fell as the dollar traded near a three-month high against the euro as signs that the world's largest economy is gaining traction and lingering credit concerns in Europe buoyed demand for the greenback. A rise in the dollar reduces demand for US crops from overseas buyers holding other currencies.
"In the pre-holiday trading, the dollar will set the direction for grains and other commodities," said Hiroyuki Kikukawa, general manager of research at Tokyo-based IDO Securities Co.