US wheat futures fell to a four-month low on Monday on active harvesting of the US winter wheat crop, a strong dollar and concerns about the global economy. Corn fell to a one-week low while soybeans slipped back to the lowest level in a week on near-perfect crop weather in the United States, including additional crop-friendly rain during the weekend.
"The weekend rains were a surprise and when you throw in the outside markets, everything is bearish," said Paul Haugens, vice president for Newedge USA. "I think people are getting concerned that the economy is not improving," Haugens said. CBOT July wheat was down 9-3/4 cents per bushel, or 2 percent, at $4.90-1/2. New-crop corn and soybeans were both down 3.5 percent.
Wall Street was holding barely firm late on Monday and struggled as investors worried about the economy, sending oil prices and energy shares lower. Doubts about an early economic recovery, fed by poor US job figures on Thursday, sapped investor confidence, pushing crude oil down to a five-week low near $64 a barrel and lifting the dollar.
A stronger dollar tends to weigh on US commodities by making them more expensive for holders of other currencies, while the price of oil influences grains because of their use in alternative fuels. Share prices also ebbed and flowed on the renewed investor caution as markets looked to this week's meeting of Group of Eight countries for further direction on the economy.
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