Chicago Board of Trade (CBOT) corn, wheat retreated Thursday after they gained for sixth trading days in a row, soybeans also settled a little lower as U.S. dollar rallied against most major currencies.
The most active corn contract for July delivery shed 4.75 cents, or 1.10 percent, to close at 4.265 dollars per bushel. July wheat delivery declined 9.25 cents, or 1.78 percent, to settle at 5.1025 dollars per bushel. July soybeans fell 1.75 cents, or 0.15 percent, to close at 11.76 dollars per bushel.
Analysts noted that stronger U.S. dollar on Thursday weighed on U.S. agricultural commodities lower as a stronger dollar make them less competitive in the international market. In theory, a stronger dollar make the dollar-dominated U.S. commodities more expensive to other currency buyers.
Some analysts also said that corn and wheat settled lower on profit taking as they already advanced for sixth successive trading days. While profit-taking might also give some pressure on soybeans Thursday as soybeans climbed to highest settlement in nearly two years after a three-successive-day gains.
The U.S. Department of Agriculture (USDA) is scheduled to release its monthly World Agricultural Supply and Demand Estimates Report on Friday. Some analysts also noted that traders were taking profits Thursday before the report released.
USDA released its weekly export sales report Thursday. According to the highlights of the report, corn net sales for 2015/2016 marketing year was rated at 1,558,900 tons till the week of June 2, which were up 18 percent from the previous week and from the prior 4-week average.
USDA said that wheat net sales for the 2016/2017 marketing year, which began June 1, totaled 223,800 tons.
As for the soybeans, USDA said that net sales of 758,500 tons soybeans for 2015/2016 were up noticeably from the previous week and 98 percent from the prior 4-week average.
USDA announced Thursday morning in its daily export sales report system that private exporters reported export sales of 240,000 tons of soybeans for delivery to China during the 2016/2017 marketing year. USDA has already announced third export sales in a row before Thursday.
On Thursday, USDA also announced export sales of 116,360 tons of corn for delivery to unknown destinations.
source : xinhua