Investing.com – Soybean futures were down for a second day on Monday, dropping to a seven-day low after the U.S. dollar rallied following Japan’s intervention in the foreign-exchange market, while easing concerns over crop conditions in South America also weighed.
On the Chicago Mercantile Exchange, soybean futures for January delivery traded at USD12.1525 a bushel during European morning trade, slumping 0.81%.
It earlier fell by as much as 1.1% to trade at USD12.1188 a bushel, the lowest price since October 20.
Soybean’s losses came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rallied 1.1% to trade at 76.03.
The greenback’s gains came after Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade Monday.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Meanwhile, industry weather group World Weather said in a report Friday that dry weather in Argentina and Brazil during the next seven days was expected to aid planting of crops.
The weather group added that rains forecast to begin November 8 may boost early crop development in both South American nations.
Brazil is the world’s second largest exporter of the grain, trailing only the U.S., while Argentina is the third largest shipper.
On Friday, soybean prices slumped nearly 1.4% after the U.S. Department of Agriculture said that soybeans inspected for delivery at U.S. ports in the preceding week fell by 43% from a year earlier to 41.15 million bushels.
Total inspections since the start of the marketing year were 39% below a year earlier, fuelling concerns over a slowdown in demand for U.S. supplies.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery fell 1.32% to trade at USD6.4638 a bushel, while wheat for December delivery retreated 1.1% to trade at USD6.3713 a bushel.
Later in the day, the U.S. Department of Agriculture was to publish its weekly crop progress report, which will provide an indication on how U.S. crops fared over the past week.
On the Chicago Mercantile Exchange, soybean futures for January delivery traded at USD12.1525 a bushel during European morning trade, slumping 0.81%.
It earlier fell by as much as 1.1% to trade at USD12.1188 a bushel, the lowest price since October 20.
Soybean’s losses came as the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rallied 1.1% to trade at 76.03.
The greenback’s gains came after Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade Monday.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Meanwhile, industry weather group World Weather said in a report Friday that dry weather in Argentina and Brazil during the next seven days was expected to aid planting of crops.
The weather group added that rains forecast to begin November 8 may boost early crop development in both South American nations.
Brazil is the world’s second largest exporter of the grain, trailing only the U.S., while Argentina is the third largest shipper.
On Friday, soybean prices slumped nearly 1.4% after the U.S. Department of Agriculture said that soybeans inspected for delivery at U.S. ports in the preceding week fell by 43% from a year earlier to 41.15 million bushels.
Total inspections since the start of the marketing year were 39% below a year earlier, fuelling concerns over a slowdown in demand for U.S. supplies.
Elsewhere on the Chicago Mercantile Exchange, corn for December delivery fell 1.32% to trade at USD6.4638 a bushel, while wheat for December delivery retreated 1.1% to trade at USD6.3713 a bushel.
Later in the day, the U.S. Department of Agriculture was to publish its weekly crop progress report, which will provide an indication on how U.S. crops fared over the past week.