CHICAGO, Dec. 9 (Xinhua) -- Chicago Board of Trade (CBOT) grains futures closed lower over the trading week which ended Dec. 8, with a firmer dollar putting additional pressure on U.S. crops.
The most active corn contract for March delivery fell 6 cents weekly, or 1.67 percent, to 3.5275 dollars per bushel. March wheat delivery plunged 19.5 cents, or 4.45 percent, to 4.19 dollars per bushel. January soybeans went down 4.5 cent, or 0.45 percent, to 9.8975 dollars per bushel over the week.
Not only CBOT wheat, but also wheat futures across the world settled lower with new contract lows. The downturn maintained through the whole week due to ample inventories and bigger-than-expected crop estimates in Canada.
The U.S. dollar index, a measure of the dollar against a basket of other major currencies, has kept edging up this week. A firmer dollar will make CBOT commodities less competitive in world market.
Market observers believe that a demand driver is lacking to encourage much beyond short covering bounce in wheat, but in longer term, the U.S. balance sheet looks to tighten amid a loss of acres.
CBOT corn followed the downturn in wheat. With the arrival of La Nina, the opposite weather pattern of El Nino, it will be difficult to sustain a lasting period of normal rainfall to corn-growing Argentina and Brazil. Still, it is too early to determine the impact on 2018 corn crop in South America.
As for soybeans, the new weather conditions, especially the dryness to prevail in Argentina and southern Brazil this month already led to worries about soybean yields there, pushing up the prices earlier this week.
Speculative demand also played an important role in sparking a sharp rise in CBOT soybeans, with prices rebounding above the 10 USD per bushel level for the first time since October.
Official statistics released on Thursday showed strong export sales of U.S. soybeans recently, but year-to-date sales are still lagging behind last year. Amid profit-taking, the soybeans suffered losses in three consecutive sessions later this week.
Fundamentally, U.S. soybean supplies are record large, while China continues to import world soybeans at a record pace. Analysts said the outlook for U.S. soybean prices now hinges on South American crops.
