By Ilan Brat
CHICAGO--Wheat futures finished at a fresh low as a strengthened
dollar and an improved outlook for output pressured prices.
Corn declined and soybeans were mixed.
Wheat prices settled at the lowest closing price for a
front-month contract since June 19. The WSJ Dollar Index, a measure
of the dollar against a basket of major currencies, rose, making
U.S. supplies less affordable for foreign buyers and requiring U.S.
prices to decrease to regain competitiveness. In addition to ample
wheat stocks around the world, an improving outlook for the U.S.
wheat crop is weighing on prices. Concerns that heavy rains early
in the summer could have damaged the U.S. wheat crop are easing
with recent favorable weather, analysts said, brightening the
outlook for output.
Wheat was affected by a "strong undertow of ample world
supplies," said Rich Feltes, vice president of research at R.J.
O'Brien in Chicago.
The September wheat contract on the Chicago Board of Trade
closed 14 1/2 cents, or 2.8%, lower at $4.96 1/4 a bushel.
Corn futures also finished down as traders reconsidered some of
their estimates for corn production. Recent benign weather is
spurring some traders to project that the U.S. Department of
Agriculture, in its next report on the crop's estimated output, is
unlikely to cut its yield estimates as much as many believe, a sign
of projected better-than-expected production.
Money managers that had bet corn prices would rise as weather
damaged the crop have been selling their positions amid improved
weather, adding to pressure on corn contracts, Mr. Feltes said.
CBOT corn futures for September delivery fell 7 1/4 cents, or
1.9%, to $3.67 3/4 a bushel.
Soybean futures were mixed, as traders balanced strong demand
for soybean meal with the pressure on corn and wheat, which can
often drag down soybeans.
CBOT August soybeans added 8 1/4 cents, or 0.9%, to $9.83 a
bushel. November soybeans shed 1 1/2 cents at $9.43 1/4 a
bushel.
Write to Ilan Brat at ilan.brat@wsj.com
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