GRAINS-Chicago grain, soybean futures slide on profit taking, slumping dollar
Chicago corn and soybean futures slip on profit taking, slumping U.S. dollar
Wheat slips following USDA report
Corn weighed on lower-than-expected export volumes
(Rewrites throughout, adds quote, updates prices, changes bullets, changes byline, changes dateline from SINGAPORE/PARIS)
By P.J. Huffstutter
CHICAGO, Nov 10 (Reuters) - Chicago corn and soybean futures slipped as investors across the board sought to take profits on Thursday, as the U.S. dollar tumbled on news that U.S consumer prices rose less than expected in October, traders said.
The monthly U.S. inflation reading is being closely watched as a gauge for the pace of further interest rate hikes by the U.S. Federal Reserve.
Corn futures also struggled as the U.S. Department of Agriculture (USDA) reported export sales of U.S. corn in the week ended Nov. 3 at 265,300 tonnes, below a range of trade expectations for 300,000 to 650,000 tonnes.
And agricultural futures were weighed down by a government report on Wednesday saying that U.S. corn and soybean inventories will be bigger than previously thought as yields of both crops increased from earlier estimates, traders said.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 2-1/4 cents at $8.04-1/4 a bushel by 1713 GMT, after setting a more than two-month low earlier in the session.
CBOT corn was down 6-3/4 cents at $6.57-3/4 a bushel, while soybeans slid down 23-1/2 cents at $14.28-1/2 a bushel.
"Given what's happening to the dollar today, it's somewhat surprising, given that the markets are friendly to grains right now," said Dax Wedemeyer, a broker and grains analyst with US Commodities in West Des Moines, Iowa. "Without some clear strength in the market, there's just a broad sell-off happening."
Meanwhile, soybean futures slipped in part on a news report that Argentina could be considering whether to bring back measures to boost soy exports, three traders said.
The Argentine central bank's already depleted reserves are under renewed pressure, as grains exports from the South American nation have slowed down following a soybean sales bonanza and a drought that is hitting wheat and corn. (Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Rashmi Aich, Savio D'Souza, Shinjini Ganguli and Jonathan Oatis)
© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp