Strong Dollar Weighs on Soybean Price Ahead of Key Economic Data

The US dollar has reached a two-month high and is expected to continue its uptrend as crude oil prices surge, bolstering bets on the Federal Reserve's interest rate hikes. This strength in the greenback is putting pressure on soybean prices, which tend to move inversely with the value of the dollar.

The US PCE inflation report and nonfarm payrolls data are set to impact the US dollar and soybean price in the coming days. Hints at rising inflation will boost Treasury yields and the dollar, weighing on soybean price.

Meanwhile, Chinese state buyers have increased their purchases of US soybeans, but this may not be enough to offset the impact of a stronger dollar on soybean prices.