Chicago wheat, soybean and corn futures fell more than 1 percent on Wednesday, reversing some gains, as oil dropped and dollar strengthened after Democrat Barack Obama won the US presidential election. Oil fell 3 percent, gold 1 and metals 3 percent, reversing course after strong overnight gains, as Obama's win helped the dollar to gain after its biggest one-day slide in 13 years in the previous session.
Analysts said the grain markets are unlikely to drop sharply as the new president is expected to be supportive of biofuels. "His home state has a reasonable strong farm vote and he is likely to be supportive of ethanol," said Doug Whitehead, a soft commodity analyst at Australia & New Zealand Banking Corp. "I think given Obama's lead in polls the agriculture markets have effectively priced in any changes to policies that Obama would have made," he added.
US grains rallied on Tuesday on optimism that financial and commodity markets may stabilise with the election of a new US president. Chicago Board of Trade corn for delivery in December fell 1.21 percent to $4.08 per bushel by 0510 GMT, while November soybeans lost 1.42 percent to $9.36 per bushel. Soybeans rose 21-1/4 cents while corn finished 10 cents higher in overnight US trade.
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