October 25, 2018 / 4:34 AM / 9 months ago

GRAINS-Wheat at 6-week low on dollar strength, soybeans extend losses

    * Strong dollar raises concerns over U.S. exports
    * Soybeans fall to two-week low on U.S. harvest pressure 
    * Lack of Chinese buying weighs on soybeans

 (Adds details, quote)
    By Naveen Thukral
    Oct 25 (Reuters) - Chicago wheat futures lost more ground on
Thursday with prices dropping to a six-week low as a stronger
dollar raised concerns over U.S. exports, which have been facing
competition from the Black Sea region. 
    Soybeans slid to a two-week low, while corn fell for a
second consecutive session as freshly harvested U.S. crops hit
the market.
    The most-active wheat contract on the Chicago Board Of Trade
      was down 0.7 percent at $4.96-1/4 a bushel, as of 0347
GMT. Earlier in the session, the contract dropped to its weakest
since Sept. 13 at $4.95-1/2 a bushel. 
    Soybean       dipped 0.2 percent to $8.49 a bushel, having
slid earlier to $8.48-3/4 a bushel, the lowest since Oct. 11;
and corn       lost 0.3 percent to $3.67 a bushel, after ending
the previous session 0.5 percent weaker.
    "Wheat is under a bit of pressure as we have yet to see
wheat exports from the United States pick up," said Phin
Ziebell, agribusiness economist, National Australia Bank. 
    "Black Sea exporters are still pretty much dominating the
show although there are expectations of demand for U.S. supplies
next year."
    An index        measuring the U.S. currency's value versus
six major peers was only a touch lower in Asia at 96.35, after
gaining an impressive 0.5 percent on Wednesday.       
    A stronger dollar makes the greenback-priced commodities
expensive for buyers holding other currencies.
    Russia's agriculture ministry on Tuesday raised its forecast
for the country's 2018 grain crop to 109 million tonnes from the
106 million tonnes expected previously due to favourable weather
for harvesting in Siberia.             
    Private consultancy IKAR raised its 2018/19 export forecast
for Russian wheat.
    Soybeans and corn prices are coming under pressure as dry
weather boosts harvesting across the U.S. Midwest.
    China's absence from the U.S. soybean market amid an ongoing
Washington-Beijing trade war is adding pressure on the soybean
market.
    Commodity funds were net sellers of CBOT soybean, wheat,
soymeal, corn and soyoil futures contracts on Wednesday, traders
said.              

 (Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)
  
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