Wheat falls as rally, dollar gain may curb demand for US crop
Wednesday, 30 December 2009
TOKYO, Dec 29 (Bloomberg): Wheat dropped on speculation that a price rally to a three-week high and the dollar's rebound may reduce demand for the US crop. Corn and soybeans also declined.
The grain yesterday jumped 5 per cent, the most since Nov. 11, leading gains in corn and soybeans on speculation that fund managers will purchase agricultural commodities at the start of 2010, anticipating improved demand as the global economy strengthens.
"It's a technical adjustment after wheat gained sharply, pushing corn and soybeans higher," Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Wheat for March delivery declined as much as 1.3 per cent to $5.435 a bushel on the Chicago Board of Trade and traded at $5.46 as of 2:52 p.m. in Tokyo. The contract yesterday touched $5.51, the highest level since December 8. The grain has lost 11 per cent this year.
The dollar traded near a two-month high against the yen on speculation the Federal Reserve may end emergency stimulus measures. The US currency gained versus the euro for a second day before a report that economists said will show US consumer confidence grew this month.
A rise in the dollar often curbs demand for US supplies from overseas importers holding other currencies.
The grain yesterday jumped 5 per cent, the most since Nov. 11, leading gains in corn and soybeans on speculation that fund managers will purchase agricultural commodities at the start of 2010, anticipating improved demand as the global economy strengthens.
"It's a technical adjustment after wheat gained sharply, pushing corn and soybeans higher," Takaki Shigemoto, an analyst at research and investment company JSC Corp. in Tokyo, said today by phone.
Wheat for March delivery declined as much as 1.3 per cent to $5.435 a bushel on the Chicago Board of Trade and traded at $5.46 as of 2:52 p.m. in Tokyo. The contract yesterday touched $5.51, the highest level since December 8. The grain has lost 11 per cent this year.
The dollar traded near a two-month high against the yen on speculation the Federal Reserve may end emergency stimulus measures. The US currency gained versus the euro for a second day before a report that economists said will show US consumer confidence grew this month.
A rise in the dollar often curbs demand for US supplies from overseas importers holding other currencies.