Chicago Board of Trade (CBOT) agricultural commodities closed lower on Tuesday with wheat, corn, and soybeans falling sharply.
The most active corn contract for May delivery lost 8 cents, or 2.11 percent, to close at 3.71 U.S. dollars per bushel. Wheat for May delivery fell 10.50 cents, or 2.04 percent, to close at 5.035 dollars per bushel. May soybeans dropped 14.75 cents, or 1. 52 percent, to close at 9.545 dollars per bushel.
Active fund selling and a lack of fresh export demand led to sharp losses of the grains, analysts said. Ample supplies both in U.S. and in the world also dragged lower the prices of corn, wheat and soybeans.
The Chicago-based company Agresource said in its daily newsletter that selling on improved weather forecasts and long liquidation is pressuring grain and soy valuations lower.
CBOT floor brokers report funds have sold 11,000 contracts of corn ,3,500 contracts of wheat, and 7,600 contracts of soybeans before noon Tuesday, said Agresource.
Meanwhile, the two-day Federal Reserve meeting, which kicked off Tuesday, also weighed on the market as analysts said the meeting will conclude with new signs that the central bank is ready to raise interest rates, which would further pushing up the U.S. Dollar index.
A strong greenback will make dollar-denominated agricultural commodities more expensive, hurting the competitiveness of U.S. grain exports.