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Wheat Futures Drop to Lowest Since April After Dollar’s Gain

June 25, 2009 at 7:50 by Andriy Moraru

Wheat futures fell to the lowest in nearly two months in Chicago on concern the dollar may extend its gains, curbing demand for the grain from importers and investors. Soybean and corn futures also declined.

The Dollar Index, which tracks the greenback against six currencies, fell 0.1 percent at 9:42 a.m. in Singapore, after gaining 0.9 percent yesterday as the Federal Reserve kept its $1.75 trillion bond-purchase program unchanged while saying the pace of the U.S. economic contraction is slowing.

The dollar is “causing concerns with the direction for the grain market,” Jonathan Barratt, managing director at Commodity Broking Services Pty in Sydney, said by phone today.

Wheat for July delivery fell as much as 0.8 percent to $5.3525 a bushel, the lowest price since April 30, in after- hours electronic trading on the Chicago Board of Trade. The futures traded at $5.36 a bushel at 10:09 a.m. Singapore time. September-delivery wheat, the contract with the most open interest, dropped as much as 0.8 percent to $5.6325 a bushel before trading at $5.6425.

From Bloomberg News.

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