CBOT Wheat Steadies Near Six-Week Lows Amid Strong US Dollar

Chicago Board of Trade wheat futures remained steady on Friday, hovering near six-week lows as a Saudi Arabian import tender boosted demand sentiment. The US dollar's strength continued to cap prices.

CBOT corn futures dipped lower, holding near a six-week low, due to the larger-than-expected USDA estimate of US corn stocks from Wednesday. The ongoing US harvest, projected to be hefty, and forecasts of improving weather in the central Midwest also weighed on the market.

Traders are eagerly awaiting the US Department of Agriculture's next crop production report and its monthly World Agricultural Supply and Demand Estimates report next week. Don Roose, president of Iowa-based US Commodities, said that the fear going into the report is that USDA will increase the soybean yield estimate.

The most traded CBOT corn settled down 4-1/2 cents at $4.97-3/4 a bushel, while CBOT soybeans closed 5-3/4 cents lower at $12.78-1/4 per bushel. The dollar index was on track for a fourth straight weekly gain against the euro, supported by elevated US Treasury yields.

Saudi Arabia's announcement of seeking to buy 535,000 metric tons of wheat for shipment in November and December was seen as a sign of fresh demand after it cancelled its previous tender due to high prices. The lack of progress in diplomatic efforts to restore normal shipping through the Black Sea also underpinned wheat prices.