Content ID

335292

GRAINS-Corn sags on firm dollar, concerns over U.S. export demand

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CBOT corn hits lowest price since Oct. 19

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Soybean futures finish higher

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Exporters sell U.S. soy to China, Spain - USDA

(Adds closing prices, details on U.S. rains)

By Tom Polansek

CHICAGO, Oct 28 (Reuters) -

Chicago Board of Trade corn futures ended lower on Friday on worries about slowing U.S. export sales, while wheat futures sagged as rains benefited growing areas in the country's southern Plains, analysts said.

A stronger dollar added to concerns about corn export demand, analysts said, after the U.S. Department of Agriculture reported lower-than-expected weekly corn export sales on Thursday. A firmer dollar makes U.S. commodities more expensive to holders of other currencies.

"Export competition continues to be a problem for the corn market," said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage. "Without decent export demand it will be difficult for rallies in the corn market to go too far."

The most-active corn contract fell 1-1/2 cents to 6.80-3/4 a bushel and reached its lowest price since Oct. 19. CBOT wheat finished down 9-1/4 cents at $8.29-1/4 a bushel and reached its lowest price since Sept. 19.

Beneficial rains fell in Texas and Oklahoma, where farmers grow hard red winter wheat, the USDA said in a daily weather report. The precipitation is "greatly benefiting winter grains and helping to revive rangeland and pastures," the report said.

Rains also improved conditions for 2022/23 corn and wheat crops in drought-hit Argentina. However, Argentina's core farming region is likely to produce just 1.34 million tonnes of wheat amid a protracted drought, which would mark an 83% drop versus a bumper crop a year earlier, the Rosario grains exchange said.

CBOT soybean future ended firmer, with the most-active contract rising 6-3/4 cents to $14.00-1/4.

Exporters sold 126,000 tonnes of U.S. soybeans to China and 198,000 tonnes of U.S. soybeans to Spain for delivery during the 2022/23 marketing year, the USDA said. The agency last confirmed sales in its daily reporting system on Oct. 20. (Reporting by Tom Polansek in Chicago, Gus Trompiz in Paris and Naveen Thukral in Singapore; Editing by Marguerita Choy)

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