GRAINS-Wheat, corn soybeans fall on recession fears, firm dollar
Grains see risk-off mood on recession fear
Firmer dollar headwind for U.S. exports
U.S. harvest weighs
(Recasts with European trade, adds new comment, changes dateline)
By Michael Hogan
HAMBURG, Oct 5 (Reuters) - Chicago wheat, corn and soybean futures fell on Wednesday as renewed recession fears came back into focus while forecasts of generally stable U.S. harvest yields also depressed.
A rise in the dollar, making U.S. exports more expensive in world markets, added downward pressure.
Chicago Board of Trade most active wheat fell 0.7% to $8.96 a bushel at 1041 GMT.
Corn fell 0.4% to $6.80-1/4 a bushel, soybeans fell 0.6% to $13.74-1/4 a bushel.
The dollar rose on Wednesday, a day after suffering its biggest one-day drop in more than two years, as the excitement of the previous day's rally in stocks and risk friendlier currencies wore off.
"Wheat, corn and soybeans are being weakened today by renewed fears of world recession and demand destruction," said Matt Ammermann, StoneX commodity risk manager.
"Following the risk-on mood on Tuesday, the mood has switched more risk-off today with equities falling and a firm dollar unfavourable for U.S. export prospects."
"The concern is that the high food prices consumers around the world are seeing will reduce demand. The U.S. soybean export programme is already looking poor now."
Seasonal pressure from an expanding U.S. harvest weighed on soybean prices, while traders awaited more information about the size of U.S. crops.
Commodity brokerage StoneX raised its estimate of the average U.S. corn yield to 173.9 bushels per acre (bpa), from 173.2 previously, but lowered its corn production estimate to 14.056 billion bushels, from 14.168 billion last month.
For soybeans, StoneX lowered its forecast of the U.S. 2022 yield to 51.3 bpa from its Sept. 1 figure of 51.8. The firm forecast U.S. soybean production at 4.442 billion bushels, down from 4.515 billion previously.
"Overall this shows that the U.S. harvest is not getting significantly worse and that yields are looking positive," Ammermann said. (Reporting by Michael Hogan in Hamburg, additional reporting by Naveen Thukral in Singapore, editing by David Evans)
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