Wheat retreats 1% on strong US dollar

SYDNEY: US wheat futures fell 1 per cent on Tuesday, retreating from a one-month high hit in the prior session, as a stronger dollar dented export prospects, though losses were capped as consumers rushed to buy staples such as bread amid the coronavirus outbreak.

FUNDAMENTALS
The most active wheat futures on the Chicago Board Of Trade were down 1.2 per cent to $5.55-1/2 a bushel by 00053 GMT. The contract closed up 4.3 per cent on Monday, when prices hit their highest since Feb. 21 at $5.63-1/4.

The most active soybean futures were down 0.1 per cent to $8.83-1/4 a bushel, having firmed 2.5 per cent on Monday when prices hit their highest since March 6 at $8.85-1/4.


The most active corn futures were down 0.6 per cent to $3.41-1/2 a bushel, having closed little changed in the previous session.

Wheat rallies as US flour millers increase purchases amid bread stockpiling by consumers, and on signs of a pick-up in global export business.

Chinese importers last week signed deals to buy 340,000 tonnes of US hard red winter wheat, their first purchase of the grain since late 2017.

The spread of the coronavirus in South America has also stoked worries about shipments of soy. Argentina is the world's top soymeal supplier and Brazil is the biggest global soybean exporter.

MARKET NEWS
The dollar eased but remained near a three-year high against a basket of currencies as investors sought the world's main funding and settlement currency ahead of a sharp anticipated fall in cashflow.

US crude oil futures climbed nearly 3 per cent in light trading as the Trump administration launched an effort to work with Saudi Arabia to stabilise oil prices

Wall Street's slide deepened on Monday as an unprecedented moves by the US Federal Reserve to shore up credit across the economy proved insufficient to sooth investors' fears about the swiftly-spreading coronavirus.