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Grains-Wheat, corn, soybeans fall on recession fears, firm dollar

October 5, 6:56 am

Chicago wheat, corn and soybean futures fell on Wednesday as renewed recession fears came back into focus while forecasts of generally stable U.S. harvest yields also depressed.

A rise in the dollar, making U.S. exports more expensive in world markets, added downward pressure.

Chicago Board of Trade most active wheat Wv1 fell 0.7% to $8.96 a bushel at 1041 GMT.

Corn Cv1 fell 0.4% to $6.80-1/4 a bushel, soybeans Sv1 fell 0.6% to $13.74-1/4 a bushel.


The dollar rose on Wednesday, a day after suffering its biggest one-day drop in more than two years, as the excitement of the previous day's rally in stocks and risk friendlier currencies wore off.

"Wheat, corn and soybeans are being weakened today by renewed fears of world recession and demand destruction," said Matt Ammermann, StoneX commodity risk manager.

"Following the risk-on mood on Tuesday, the mood has switched more risk-off today with equities falling and a firm dollar unfavourable for U.S. export prospects."

"The concern is that the high food prices consumers around the world are seeing will reduce demand. The U.S. soybean export programme is already looking poor now."

Seasonal pressure from an expanding U.S. harvest weighed on soybean prices, while traders awaited more information about the size of U.S. crops.

Commodity brokerage StoneX raised its estimate of the average U.S. corn yield to 173.9 bushels per acre (bpa), from 173.2 previously, but lowered its corn production estimate to 14.056 billion bushels, from 14.168 billion last month.

https://www.nasdaq.com/articles/grains-wheat-corn-soybeans-fall-on-recession-fears-firm-dollar