Soybean, Wheat, and Corn Continued to Go Up As Dollar Fell

According to Bloom-berg, as The Dollar fell and weakened in the market, Corn, Soybeans, and Wheat began to rally; and this could be a the appeal of U.S. crops to traders and investors.

In May, on the CBOT delivery of Soybeans rose 1% to $9.6125 a bushel, and in Singapore time they were at $9.585 at 2:46 p.m. In July, delivery of Corn continued to advance 1.1% to $3.6125 a bushel, while wheat gained 1% to $4.8425 a bushel.

The Dollar Index began to fall 1.3% after European governments offered Greece a rescue package worth 45 billion euros ($61 billion).

By July, Wheat prices may fall 8.6% from the closing price of $4.7925 a bushel on April 9, based on the average estimate of 15 analysts surveyed by Bloomberg.

According to data from the U.S. Department of Agriculture, Wheat farmers in the U.S. don’t plant the grain. This is because of world inventories last year of 165.23 million tons; and production of 618.11 million tons in the year ending May 31 would still exceed estimated demand by 21%.

Thomas Mielke, executive director of trade magazine Crude Oil World, said that as global output might exceed demand by 20 million tons in 2009-2010, Soybean prices may fall “significantly below current levels”.

Also, in Rotterdam, Soybeans Prices may fall to about $350 a ton in the second half of the 2009-2010 marketing year. They averaged $428 in the six months beginning Oct. 1.

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Source: Bloom-berg.com
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