Agricultural Commodities Fall on Stronger U.S. Dollar

CHICAGO, July 10 (Xinhua) -- Chicago corn, wheat and soybeans all fell in trading Tuesday, as a higher dollar and profit seeking by traders both pressured agricultural commodities.

The most active corn contract for December delivery lost 12.5 cents, or 1.71 percent, to close at 7.175 dollars per bushel. September wheat fell seven cents, or 0.85 percent, to settle at 8. 2125 dollars per bushel. November soybeans lost 9.25 cents, or 0.6 percent, to close at 15.4385 dollars per bushel.

Agricultural commodities all reversed course Tuesday, after soaring in trading during the previous session.

Weighing upon corn, wheat and soybeans most was a higher dollar, as the day saw the greenback rise to a two-year high against the euro. A stronger dollar is a negative for commodities, as it makes them more expensive to holders of other currencies.

Outside market forces were also negative Tuesday, with losses in key commodities gold and crude oil, as well as U.S. equities.

Corn, wheat and soybeans continue to see underlying support from hot weather concerns, although after Monday's rally traders engaged in some profit-seeking.

Traders are also awaiting the U.S. Department of Agriculture Domestic and Global Stocks report due out Wednesday, which is expected to show decreased U.S. stocks for corn, and increased U.S. stocks for soybeans and wheat.

However, traders are also expecting to see a cutback in Black Sea wheat production, which would support the U.S. crop. Global soybean production is also believed to be revised 1.5 million tonnes lower than the last estimate, and many investors think lower South American soybean production could increase demand for the U.S. crop.