By Jae Hur
Jan. 7 (Bloomberg) -- Soybeans dropped for the first time in three days after touching a three-month high and corn and wheat fell as the dollar advanced and crude oil extended losses, reducing demand prospects for U.S. supplies.
The dollar gained as much as 0.8 percent against the euro after touching a three-week high yesterday. Crude oil lost as much as 2 percent, eroding demand prospects for the oilseed and corn as a source of alternative fuel.
“The firmer dollar and weaker oil prices put pressure on the grains market,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo.
Soybeans for March delivery traded 0.9 percent lower at $10.07 a bushel by 4:16 p.m. in Tokyo during after-hours trading on the Chicago Board of Trade, after touching a peak of $10.23, the highest since Oct. 3. Soybeans are up 30 percent from an 18-month low of $7.7625 on Dec. 5.
Corn for March delivery was 0.5 percent lower at $4.25 a bushel after gaining more than 4 percent to reach $4.29 yesterday, the highest since Oct. 30. The price has risen 39 percent from a two-year low of $3.055 on Dec. 5.
Crude oil fell for a second day on signs the economy in the U.S., the world’s biggest energy consumer, contracted further in November and December, pushing oil inventories higher. Crude oil for February delivery fell 1.2 percent to $47.95 a barrel at 4 p.m. in Tokyo on the New York Mercantile Exchange.
The dollar traded near a three-week high versus the euro on speculation U.S. President-elect Barack Obama’s $775 billion package of tax cuts and government spending will help the economy recover from a recession. The dollar was at $1.3486 per euro from $1.3536 late in New York yesterday, when it rose to $1.3313, the highest since Dec. 12.
Wheat for March delivery lost 2.2 percent to $6.2925 a bushel, declining for the first time in six days. The grain earlier touched $6.4625, the highest since Oct. 3.
To contact the reporter on this story: Jae Hur in Tokyo at jhur1@bloomberg.net
Posts
No comments:
Post a Comment