Strong dollar pressures prices as traders await US election result
CANBERRA, Nov 6 (Reuters) -Chicago wheat, corn and soybean futures slipped on Wednesday, pressured by a strengthening U.S. dollar, as traders awaited the outcome of the U.S. presidential election.
FUNDAMENTALS
* The most-active wheat contract on the Chicago Board of Trade Wv1 was down 0.7% at $5.68-1/2 a bushel at 0126 GMT, with CBOT soybeans Sv1 0.1% lower at $10.01 a bushel and corn Cv1 down 0.2% at $4.17-1/2 a bushel.
* All three contracts hit four-year lows in recent months but have regained some ground since. However, bumper U.S. corn and soybean harvests and improving conditions in the dry U.S. winter wheat regions are pressuring prices.
* The dollar was 0.7% stronger against a basket of major currencies, making dollar-priced U.S. farm exports costlier for overseas buyers. FRX/ USD=
* Traders adjusted positions and moved to the sidelines while awaiting the U.S. election outcome. Tariffs proposed by Republican Donald Trump - whose first term featured a trade war with China - are a particular focus as they could disrupt U.S. agricultural trade.
* Markets are also looking forward to a U.S. interest rate decision on Thursday and crop forecasts from the U.S. Department of Agriculture (USDA) on Friday.
* Analysts expect the USDA to trim its estimate for 2024-25 U.S. soybean production and lower its domestic-ending stocks forecast, while keeping its 2024-25 U.S. corn output estimates largely unchanged.
* Low corn and soy prices have triggered a flurry of U.S. export sales, with the USDA reporting on Tuesday that another 124,000 metric tons of U.S. corn were sold to unknown buyers.
* High exports from Ukraine have also maintained pressure on wheat prices, with the country's grain and oilseed exports by sea and river totalling 5.28 million metric tons in October, up from 3.13 million tons in October 2023, traders' union UGA said.
MARKETS NEWS
* U.S. stock futures and the dollar pushed higher in Asia on Wednesday, as early results from the U.S presidential election suggested the race remained too close to call, leaving investors jumping at shadows. MKTS/GLOB
Reporting by Peter Hobson; Editing by Sumana Nandy
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