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Corn, soy, wheat sag as traders reduce risk in new year

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CHICAGO — Chicago Board of Trade grain and soybean futures stumbled on Tuesday in “risk-off” trading amid spillover pressure from losses in other markets and gains in the U.S. dollar, analysts said.

Oil prices also tumbled while U.S. stocks struggled. Gains in the dollar, which was headed for its largest one-day rise in over three months, made U.S. farm products look less attractive to importers.

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“It’s a negative overall market today,” said Matt Wiegand, commodity broker for FuturesOne. “It’s a risk-off start to the year.”

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The most-active CBOT soybean contract was down 31 cents at $14.93 a bushel by 11:45 a.m. CST (1745 GMT). Corn was down 9 cents at $6.69-1/2 a bushel, while wheat dropped 20-3/4 cents to $7.71-1/4 a bushel at the CBOT.

The markets pulled back after posting annual gains in 2022.

Better-than-expected rains over the weekend in dry areas of Argentina, the world’s largest exporter of soyoil and soymeal, contributed to weakness in agricultural futures, analysts said. But brokers said the weather remained a “mixed bag” because conditions are expected to turn drier again.

Crop stress in northern and eastern Argentina will rebuild to about 60% of the soy and corn area from just under half, Commodity Weather Group said.

“It seems like they get some relief, and then above-normal temperatures,” Wiegand said.

In other news, weekly U.S. grain export inspections were considered somewhat disappointing, traders said.

The U.S. Department of Agriculture reported inspections in the week ended Dec. 29 were 85,672 tonnes for wheat; 667,010 tonnes for corn; and 1.46 million tonnes for soybeans. Analysts surveyed by Reuters were expecting 250,000 tonnes to 450,000 tonnes for wheat; 650,000 tonnes to 900,000 tonnes for corn; and 1.5 million to 1.865 million tonnes for soybeans. (Reporting by Tom Polansek; Editing by Paul Simao)



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