Wheat falls as strong dollar darkens US export outlook

HAMBURG/SINGAPORE: Chicago wheat futures fell for a second session on Thursday, pressured by the stronger dollar, which made US supplies more expensive in world markets, and improved crop prospects for Black Sea exporters.

Soybeans dipped to their lowest in almost three weeks on easing concerns about a truck strike disrupting Brazilian exports, before steadying after three straight losing sessions.

"The greenback's strength remains the main issue for US wheat prices," Tobin Gorey, director of agricultural strategy for Commonwealth Bank of Australia, said in a note.

"Traders are now less worried about disruption from Brazilian logistical issues. The whole market knows the South American pair (Brazil and Argentina) will have plenty of soybeans available to sell."

Chicago Board of Trade May wheat fell 0.4 percent to $4.93-3/4 a bushel at 1120 GMT after touching $4.91-1/4, the lowest since Feb. 26. May soybeans earlier fell to $9.91 a bushel, the weakest since Feb. 13, before recovering to rise 0.1 percent to $9.95-3/4 a bushel. Corn was down 0.1 percent at $3.89 a bushel, following wheat down. "Soybeans saw some bargain hunting on concern that there could still be some shipping delays from Brazil as the country struggles to clear the backlog of shipments after the Brazilian truck drivers' strike," one European trader said.

US wheat has failed to win business in several recent international tenders, with cheaper supplies from Europe cornering sales. The stronger dollar further dampened export hopes on Thursday.

The dollar climbed to a fresh 11-1/2-year high on Thursday, boosted by strong US private-sector jobs growth before the launch of quantitative easing by the European Central Bank.

Russian farmers have started their spring grain sowing campaign with prospects for the 2015 crop brighter than first thought, Russia's agriculture ministry said on Wednesday. Prospects for a big harvest could mean Russia makes an early return to export markets.

South American soybean producers are expected to flood the market with beans as a record harvest peaks and supply bottlenecks ease as a truck drivers' strike in Brazil petered out.

Brazilian police said only four highway roadblocks remained on Wednesday, down from 100 nationwide a week earlier, easing fears Brazil's record soybean crop now being harvested could not be immediately shipped out.

"The soybean market is under pressure on record crop perspectives, even if the production has been cut compared to first estimates it is still a record," French consultants Agritel said in a note.

Traders downplayed news that Argentine farmers will suspend grain sales for three days to protest against export quotas and other government policies, saying three days would not be a major issue in global terms.