Soybean and Corn Futures Plummet on Strong Dollar and Export Concerns, US

Soy and corn futures plummeted to their lowest levels in three years on Wednesday, driven by fund selling and the strength of the dollar, which sparked concerns about U.S. crop exports. Stiff competition from abundant global supplies is putting pressure on U.S. grains and soybeans, while domestic ending stocks are expected to be high, according to analysts. The decline coincides with the upcoming release of crop forecasts by the U.S. Department of Agriculture and weekly export sales data. The most-active soybean contract dropped to $11.72-3/4 a bushel, the weakest price since December 2020. Meanwhile, CBOT corn sank to $4.22-1/4 a bushel, the lowest for a most-active contract in more than a year. Speculative funds hold significant short positions in the markets, suggesting expectations of further price drops. CBOT wheat also saw a decline, reaching its lowest point in almost a month. The European market experienced similar troubles due to export competition from the Black Sea region, combined with a surplus of high stocks.