Soybeans, corn and wheat declined on speculation that a rally in the dollar will erode the appeal of commodities from the U.S., the biggest exporter of the crops.
The Buenos Aires Cereals Exchange increased its forecast for Argentina’s 2009-10 corn crop Thursday, pegging output at 20.2 million metric tons compared to the 19.3 million metric tons it forecast last week.
World 2009-10 wheat production has been revised higher to 675 million metric tons, up 1 million tons on the month, the International Grains Council said Thursday.
China’s agricultural commodities imports in January surged from a year earlier because they were cheaper than local options and as companies took shipments in anticipation of a recovery in consumer and industrial demand, said analysts Wednesday.
U.S. Department of Agriculture Secretary Tom Vilsack said Wednesday he expects the U.S. agriculture-trade surplus to rise by “several billion dollars” in coming years.
Sugar futures rose the most in almost two weeks on speculation that importers will follow Pakistan in boosting purchases, tightening global supplies.
Corn and soybeans rose on signs that a drop in prices discouraged U.S. farmers from selling record crops harvested late last year, tightening available supplies for exporters and processors.
Wheat futures rose for the third time in four sessions as the dollar’s retreat increased the allure of U.S. commodities.
Hog futures rose for the second time in three days as U.S. pork prices extended a rally, renewing concern that meat supplies are shrinking. Cattle fell.
Corn prices jumped to a five-week high and soybeans rose as gasoline costs climbed, enhancing the appeal of fuels refined from grain and oilseeds. Wheat rebounded as speculators unwound bets that futures will fall.