Soybeans, wheat pushed down by strong dollar

HAMBURG, Feb 5 (Reuters): Chicago wheat, corn and soybeans fell on Monday, with soy hitting 24-month lows, as dollar strength and lacklustre global import demand weakened sentiment.

Dollar strength makes US supplies more expensive in export markets at a time of weak demand, especially for wheat.

The Chicago Board of Trade's most active soybean contract fell 0.2 per cent to $11.85-3/4 a bushel by 1215 GMT. Soybeans earlier touched their lowest since November 2021 at $11.83-1/4 a bushel, below two-year lows hit on Friday.

Wheat fell 1.2 per cent to $5.92-1/2 a bushel while corn slipped by 0.6 per cent to $4.39-1/4 a bushel.

The dollar rose to eight-week highs against major currencies and new grain import tenders were scarce, with only Iran in the market.

"The stronger dollar is bad news for US export sales of wheat, corn and soybeans and is generating weakness across grains and soybeans today," said Matt Ammermann, StoneX commodity risk manager.

"Comments from the US Federal Reserve indicate rate cuts are not on the immediate horizon and US markets could have to face dollar strength at a time of continued weak import demand. The Chinese Lunar New Year holidays are also approaching, which is traditionally a period of slack demand."