Corn Declines in Chicago as Dollar’s Gain May Curb Demand for Commodities

Corn dropped as the dollar gained for the first time in 10 days, reducing the appeal of commodities as a hedge against inflation and on speculation that yields in the U.S., the largest exporter, may improve on favorable weather.

Corn for July delivery lost as much as 1.7 percent to $7.44 a bushel on the Chicago Board of Trade and traded at $7.5025 by 12:11 p.m. London time.

“Commodities are being weighed down across the board today mainly by the dollar,” said Lee Joon, a senior trader at Woori Futures Co., in Seoul.

Corn yields in the U.S. Midwest may be “well above trend” by the time of the harvest because more favorable conditions are expected in June and July, David Streit, a senior lead forecaster at Commodity Weather Group LLC, said on April 29.

Soybeans for July delivery decreased as much as 0.9 percent to $13.8125 a bushel, extending last month’s 1.2 percent decline.

July-delivery wheat gained 0.1 percent to $8.02 a bushel and milling wheat traded in Paris climbed 0.9 percent to 246.76 euros ($366.45) a metric tons.

(Source: http://www.bloomberg.com/news/2011-05-02/corn-drops-as-dollar-s-gain-cuts-demand-for-commodities-as-store-of-value.html)