US wheat futures fell more than 2 percent early on Monday, joining a broad decline in commodities as the dollar roared to an 11-month high, analysts said. Soyabeans and corn also sagged, with a selloff in Chinese soyabean and soyaoil futures adding pressure. As of 12:38 pm CST (1838 GMT), Chicago Board of Trade December wheat was down 8-1/4 cents at $3.94-3/4 per bushel after hitting $3.92-3/4, its lowest since October 5.
December corn was down 3-1/4 cents at $3.37 a bushel after falling to its lowest since October 3. January soyabeans were down 3-1/4 cents at $9.82-3/4 a bushel after notching a four-week low at $9.75-1/4. Wheat posted the biggest percentage decline as the dollar climbed, making US grains less attractive on the world market. The United States exports about 40 percent of its wheat crop. Because wheat is produced in many other regions of the world, it faces more competition for export business than corn or soyabeans.
"The story of the day continues to be the strength of the dollar and the widespread selling of the broader commodity sector," INTL FCStone chief commodities economist Arlan Suderman wrote in a note to clients. "Wheat has taken the brunt of the selling among the major ags because it is most vulnerable to the consequences of a strong dollar," Suderman said.
Wheat traders also eyed the possibility of another big Russian wheat crop next year. Russian farmers have sown the largest grain area of the last seven years and could add more in the coming weeks, analysts said last week. Corn followed wheat lower, with both markets pressured by huge global grain inventories. CBOT soyabeans fell in early moves as soya futures on China's Dalian Commodity Exchange tumbled 5 percent on talk of government measures to crack down on speculation.
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