WINNIPEG, (MarketsFarm) – Growing strength in the United States dollar has hurt commodity prices on the Chicago Board of Trade (CBOT), according to Terry Reilly, grains analyst for Futures International in Chicago, Ill.
The impetus for the gain was comments from U.S. President Donald Trump, who remarked a trade deal with China could come sooner rather than later. Trump’s comments came a day after he scorned China for its trade practices.
“It’s one of the largest one-day rallies we’ve seen since August 26,” Reilly noted of the greenback’s strength.
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Prices for the CBOT soy complex have been lower because traders are disappointed in the lack of confirmation regarding soybean sales to China, he stated.
Weather as well has affected the Chicago market, as most of the continental U.S. is experiencing the second warmest September on record, Reilly said. In turn, that’s left farmers with good conditions for their crops.
However “Minneapolis wheat is rallying on unfavourable weather for spring wheat in Canada and the U.S.,” the analyst said.
Reilly also commented that corn has struggled of late because of concerns for its demand as ethanol production is down at its lowest levels in two years.
