US wheat futures slipped for the third straight day, closing 4.5 percent lower on Tuesday as this week's bounce in the dollar sparked profit-taking. "It's the strength of the dollar as much as anything. It's putting some pressure on," said Dan Cekander, an analyst with Newedge USA brokerage.
The dollar rose to two-week highs as investors sought shelter in the currency after US consumer data worsened in October, suggesting an economic recovery could stall. A firmer dollar makes American exports, such as wheat and corn, more expensive to overseas buyers and prompts investors to sell commodities as their risk appetite wanes.
Wheat was the biggest loser in the Chicago Board of Trade grain markets as the price difference between wheat, corn and soy adjusted after last week's rally to multimonth highs. All three had risen amid the dollar's collapse to 14-month lows and US harvest delays. In particular, traders were eyeing the CBOT December corn/wheat spread, with corn gaining 17 cents on wheat.
CBOT wheat for December delivery ended 23-3/4 cents lower, or 4.5 percent at $5.03-1/4. December corn fell 7-1/4 cents, or 1.9 percent, to $3.70-3/4. Soybeans also fell, hitting their lows late amid updated forecasts calling for an improvement in harvest weather for next week, traders said. November soy ended 13 cents a bushel lower, or 1.3 percent, at $9.73-1/2 near the day's low of $9.71. Harvest is running at least two weeks behind due to heavy rains across the grain belt, according to US Department of Agriculture figures issued Monday.