Global grain and oilseed markets

Soybean, wheat, and corn futures on the Chicago Mercantile Exchange fell on Monday, following a decline in broader commodity markets, especially the drop in oil prices. The strengthening of the dollar, which reduces the competitiveness of American exports, put pressure on all commodity markets. The dollar maintained its position on Monday as investors assessed what the Federal Reserve might look like under the leadership of Kevin Warsh, who prefers a smaller balance sheet. "The weakness in the energy sector is 99% responsible for what is happening in the grain markets," said Jim Gerlach, president of A/C Trading. "It is not possible for oil prices to drop by 4-5% and for corn and soybean prices not to be affected." Corn and soybeans, by-products of which are used to produce biodiesel, often correlate with falling oil prices. In South America, Brazil is in the early stages of harvesting a record soybean crop. Traders expect China to mainly turn to Brazil for soybean imports in the ...