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Corn,Soybeans & Wheat Down on Strong Dollar, Sugar Falls

May 3, 2010 at 21:27 by Vladimir Vyun

Corn, soybeans and wheat slid today as a stronger dollar diminished an appeal of commodities as an alternative investment and made exports from the U.S more expensive. The crops also fell on a concern that domestic prices may go down as the oil spill will cut exports. July futures for corn delivery dropped $0.03 (0.8 percent) to $3.7225 per bushel by 10:20 a.m. on the Chicago Board of Trade. July futures for soybean delivery slipped $0.0975 (1 percent) to $9.8925 per bushel in Chicago. July futures for wheat delivery subtracted $0.0825 (1.6 percent) to $4.9475 per bushel.

Sugar dropped today as a supply may exceed a demand in India, pushing prices down and possibly turning the largest buyer in the world into exporter. Cane planting increase 18 percent, resulting in a possibility for a production to exceed 25 million metric tons in the year starting October 1st. The Indian government may impose a tax on imports to protect the industry and farmers. A global demand for sugar may be surpassed by an output by 6 million tons in 2010–11 season. July delivery for raw sugar slipped 1.7 percent to $0.1490 per pound on ICE.

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