Chicago wheat futures fell 1.4 percent on Monday as the dollar climbed against a basket of currencies, making US grain more expensive in a well-supplied global market. Soyabean and soyaoil futures also eased amid steep declines in palm oil after India hiked palm oil import taxes. Corn futures were about flat.
Chicago Board of Trade December wheat was down 6 cents to $4.21-1/4 per bushel at 10:58 a.m. CST (1658 GMT), giving back its gains from the previous session. Ample world supplies, padded by a record harvest in Russia, heightened export competition and left US and western European origins struggling against cheaper Black Sea supplies.
A tender issued by Iraq, which is seeking 50,000 tonnes of wheat from the United States, Australia or Canada, could bring fresh US sales as there will not be competition from Russia and Ukraine. The US Department of Agriculture said 259,264 tonnes of US wheat were expected in the week ended Nov. 16, near the low end of analyst estimates for 250,000 to 450,000 tonnes.
Exports of soyabeans totalled 2.1 million tonnes and corn 632,793 tonnes, both within the range of estimates. CBOT January soyabean futures were down 2-3/4 cents at $9.87-3/4, a decline of 0.3 percent. CBOT December corn was up 3/4 cent at $3.43-3/4. Soyaoil futures eased 1.3 percent, while palm oil futures sank 3.3 percent. Global vegoil markets tumbled while Indian vegoil futures surged in the wake of India's announcement late on Friday that it was hiking import taxes on crude palm oil to 30 percent from 15 percent. Losses in soyabeans were capped by dry weather in Argentina, which could hurt yields in the top soyameal and soyaoil exporter.
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