Wheat drops as global supply and stronger dollar weigh

Chicago wheat slid nearly 2% on Tuesday, with ample supply from Northern Hemisphere harvests and expectations of an above-average crop in Australia weighing on the market. Corn eased from a one-month peak in the previous session while soybeans also fell as the prospect of bumper U.S. harvests this autumn curbed prices. A rebound in the dollar index from a five-week low also pressured Chicago grains as trading resumed following Monday’s Labor Day holiday in the United States. The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.8% at $5.24-3/4 a bushel by 1159 GMT. Australia’s wheat output is poised to be 22% above the 10-year average at 33.8 million metric tons on the back of largely crop-friendly growing conditions, the agriculture ministry said, raising sharply its outlook for the upcoming harvest. “This announcement of the improvement in production potential in Australia comes after the increase in estimates in Canada last week,” Argus analysts said in ...