Corn, soybean, and wheat prices end lower as dollar strengthens
Corn, soybean, and wheat prices slid on Friday in Chicago under pressure from the stronger dollar against most major currencies, after the European Central Bank’s interest rate cut, and following weaker than expected weekly exports.
The dollar rallied against the euro after the ECB cut rates for the fourth time this year, while US consumer prices marked the biggest increase in seven months, making dollar-denominated exports costlier in global markets.
According to the US agricultural ministry, net corn exports reached 946.900 metric tons, below estimates of 1.1 million metric tons.
US soybean sales clocked in at 1.1738 million metric tons, below estimates as well.
Technical factors also contributed to the losses, with corn futures due in March facing a 200-day SMA resistance, while soybean January futures failed to trespass the 100-day SMA barrier.
The Brazilian government raised its estimates for soybean production in the 2024/25 year to a record high.
The dollar index rose 0.1% as of 19:45 GMT to 107.01, with a session-high at 107.1, and a low at 106.7.
Corn
On trading, corn futures due in March fell 0.2% to $4.42 a bushel.
Soybeans
Soybean futures due in January fell 0.7% to $9.88 a bushel.
Wheat
Wheat March futures fell 1.2% to $5.52 a bushel.
Ripple marks weekly gains of over 3%
Ripple rose on Thursday and contained the losses sustained in recent sessions due to profit-taking, following a series of stunning surges by Ripple.
US two-year treasury yields rose 1.5 basis points to 4.215%.
US 10-year treasury yields rose by two basis points to 4.335%, the highest since November 22, while 30-year yields rose 2.5 basis points to 4.57%.
Earlier data showed US consumer prices rose 2.7% y/y in November as expected, up from 2.6% in October.
US producer prices rose 3% y/y in November, above estimates of 3.6%, and up from a revised 2.6% increase in October.
Therefore the Federal Reserve will likely continue to cut interest rates at upcoming meetings, with the odds of a 0.25% interest rate cut next week standing at 97%.
US President-elect Donald Trump said in an interview that the US will achieve great progress in the crypto field, and will not accept China or any other country to pioneer in this field.
Ripple
On trading, Ripple rose 2.7% on Coinmarketcap as of 21:47 GMT to $2.42, with a weekly profit of 3.1%.
Wall Street reverses lower under pressure from treasury yields
Most US stock indices fell on Friday as US treasury yields rose on speculation about the Federal Reserve’s monetary policies.
US two-year treasury yields rose 1.5 basis points to 4.215%.
US 10-year treasury yields rose by two basis points to 4.335%, the highest since November 22, while 30-year yields rose 2.5 basis points to 4.57%.
Earlier data showed US consumer prices rose 2.7% y/y in November as expected, up from 2.6% in October.
US producer prices rose 3% y/y in November, above estimates of 3.6%, and up from a revised 2.6% increase in October.
Therefore the Federal Reserve will likely continue to cut interest rates at upcoming meetings, with the odds of a 0.25% interest rate cut next week standing at 97%.
On trading, Dow Jones rose 0.1%, or 5 points to 43919 points as of 16:29 GMT, while S&P 500 slipped 0.1%, or 5 points to 6045 points, as NASDAQ inched down 0.2%, or 43 points to 19,859 points.
US dollar widens gains as treasury yields bounce higher
The US dollar rose in European trade on Friday against a basket of major rivals, expanding gains for the sixth straight session and hitting two-week highs, and about to mark the second weekly profit in a row, as US 10-year treasury yields rebounded.
The gains come despite the increasing odds of a Federal Reserve 0.25% interest rate cut next week, which would be the third rate cut this year.
The Index
The dollar index rose 0.2% to 107.19, the highest since November 26, with a session-low at 106.94.
On Thursday, the index rose 0.4%, the fifth profit in a row as investors buy up the greenback.
Weekly Trades
The dollar index is up over 1.15% so far this week, about to mark the second weekly profit in a row.
US Yields
US 10-year treasury yields rose 0.3% on Thursday, expanding gains for the fifth straight session, and hitting a two-week high at 4.342%.
The modest gains come as US 10–year treasury yields rebounded as well on speculation the Federal Reserve won’t enact large interest rate cuts in 2025.
US Rates
The recent US consumer prices data matched expectations, and paved the way for the Federal Reserve to go ahead with a rate cut next week.
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut next week rose to 98%.