Wheat price drops as strong dollar threatens, recession fears weigh in United States

Chicago wheat fell on Monday as the strong dollar threatened to hamper U.S. exports while expected increases in interest rates raise the prospect of world recession cutting demand. Continued Ukrainian grain export shipments into world markets also burdened. Soybeans were underpinned by hopes of more Chinese buying and firm soymeal. Chicago Board of Trade most active wheat fell 1.7% to $8.44-1/4 a bushel at 1206 GMT. Soybeans rose 0.3% to $14.53 a bushel, corn fell 0.3% to $6.75-1/4 a bushel. Equities and crude oil fell and the dollar firmed on Monday ahead of central bank meetings in the U.S. and elsewhere which could see borrowing costs rise globally. “Wheat is seeing downward pressure today from the stronger dollar which will burden U.S. exports at a time Russian wheat is looking cheap in world markets,” said Matt Ammermann, StoneX commodity risk manager. “Fears central banks will increase interest rates and cause a world recession, so cutting demand, is also hitting wheat and ...