Dollar falls to three-year low

by Staff
Share This:

Recap for January 18

The U.S. dollar was slightly lower Thursday and at a three-year low as Congress made little noticeable progress to resolve a budget impasse that could lead to a government shutdown Friday.

Winter wheat futures moved higher Thursday as dry weather and bouts of freezing temperatures in the Great Plains was seen as potentially reducing winter wheat production after the U.S.D.A. last Friday reported higher-than-expected winter wheat planted area. Weakness in the value of the U.S. dollar underpinned grain and oilseed markets in general. Minneapolis March wheat fell 1¼c to $6.10½ a bu. Kansas City March wheat gained 2½c to close at $4.29½ a bu. Chicago March wheat gained 3¾c for a $4.25¼ a bu close. March corn fell 1½c to close at $3.51½ a bu. March soybeans gained 4¼c to close at $9.73 a bu. March soybean meal rose $4.10 to close at $328.40 a ton. January soybean oil fell 0.28c to 32.23c a lb.

Weakening U.S. government bond prices weighed on yield-sensitive sectors such as real-estate and utilities Thursday, and major U.S. equity markets declined from record highs set Wednesday. Such companies and utilities are considered “bondlike” because they tend to pay steady dividends, analysts said. The Dow Jones Industrial Average lost 97.84 points to close at 26,017.81. The Standard & Poor’s 500 Index declined 4.53 points to close at 2,798.03. The Nasdaq Composite Index fell 2.23 points to 7,296.05.

Crude oil futures were lower Thursday amid mixed signals of increasing output from major oil producers and government data showing a larger-than-expected reduction in stockpiles. February light, sweet crude oil eased 2c to close at $63.95 a barrel.

Some investors took profits subsequent to a recent run-up in prices, and gold futures were lower Thursday. The February contract declined $12 to $1,327.20 an oz. Boosted by a weaker dollar, gold prices recently rose to their highest level since September.

Recap for January 17

U.S. equity markets closed higher Wednesday. The Dow industrials on Tuesday notched its best first 10 trading days of the year since 2003, and on Wednesday marked the fastest rise from one 1,000-point milestone to the next when it closed above 26,000 for the first time. The Dow had reached 25,000 for the first time on Jan. 4. All 11 sectors of the S&P 500 posted gains and the tech-focused Nasdaq gained 1%. The Dow Jones Industrial Average soared 322.79 points to 26,115.65. The Standard & Poor’s 500 Index gained 26.14 points to close at 2,802.56. The Nasdaq Composite Index added 74.59 points to close at 7,298.28.

Bearish attitudes eased some Wednesday, giving wheat, corn, soybean and soybean meal futures a bounce with support also from short covering. Signals of ongoing good soybean demand steadied futures prices. Soybean oil declined after momentum from last week’s U.S.D.A. reports petered out. The reports showed U.S. farmers produced fewer soybeans than expected in 2017, though production still was record high. Minneapolis March wheat edged up ¼c to $6.11¾ a bu. Kansas City March wheat gained 5c to a $4.27 a bu close. Chicago March wheat also gained 5c for a $4.21½ a bu close. March corn added 4¾c to close at $3.53 a bu. March soybeans gained ¾c to close at $9.68¾ a bu. March soybean meal rose $1.50 to close at $324.30 a ton. January soybean oil fell 0.28c to 32.51c a lb.

Crude oil futures edged down from multi-year highs before posting a slight gain Wednesday as investors awaited release of data on global crude oil production. February light, sweet crude oil advanced 24c to close at $63.97 a barrel.

The U.S. dollar inched higher Tuesday after falling recently to a multi-year low.

Gold futures closed higher Tuesday. The February contract advanced $2.10 to $1,339.20 an oz. 

Recap for January 16

Winter wheat futures closed at six-week lows Tuesday. Although U.S.D.A. data Friday showed the least acreage planted to winter wheat in more than a century, the figures were above analysts’ expectations, which pressured futures. The data featured a lower production estimate for soybeans, and futures notched gains both Friday and Tuesday. Corn futures were higher Tuesday, with gains in both corn and soybeans also partially resulting from short covering. Minneapolis March wheat closed 1¼c lower at $6.11½ a bu, but later months all notched small gains. Kansas City March wheat lost 4¼c to $4.22 a bu. Chicago March wheat declined 4c to close at $4.16½ a bu. March corn added 2c for a $3.48¼ a bu close. March soybeans gained 7½c to close at $9.68 a bu. March soybean meal rose $5.80 to close at $322.80 a ton. January soybean oil fell 0.34c to 32.79c a lb.

U.S. equity markets closed lower Tuesday. The DJIA briefly climbed above 26,000 for the first time earlier in the day. Some money managers say markets will resume their climb as fourth-quarter earnings reports surface. The Dow Jones Industrial Average declined 10.33 points to 25,792.86. The Standard & Poor’s 500 Index fell 9.82 points to close at 2,776.42. The Nasdaq Composite Index lost 37.38 points to close at 7,223.69.

Crude oil futures were lower Tuesday but still traded near three-year highs. February light, sweet crude oil declined 57c to close at $63.73 a barrel.

Investors’ pummeling of the U.S. dollar continued Tuesday amid indications foreign central banks may restrict monetary policies at a faster pace following strong economic growth.

Gold futures closed higher Tuesday. The February contract advanced $2.20 to $1,337.10 an oz. 

Recap for January 12

Wheat futures closed sharply lower Friday as higher 2018 carryover forecast by the U.S.D.A. more than offset estimated winter wheat planted for harvest in 2018 at the lowest level since 1909. Corn futures also declined as U.S.D.A. 2017 production, 2018 carryover and Dec. 1, 2017, stocks all came in above expectations. Soybean and soybean meal futures, meanwhile, closed higher on bullish U.S.D.A. data, but still were lower for the week. Minneapolis March wheat closed 16¼c lower at $6.12¾ a bu. Kansas City March wheat lost 14c to $4.26¼ a bu. Chicago March wheat declined 12¾c to close at $4.20½ a bu. March corn lost 2½c to $3.46½ a bu. January soybeans gained 3½c to close at $9.44 a bu, with later months all up more than 10c a bu. January soybean meal rose 20c to close at $309.80 a ton. January soybean oil eased 0.04c to 32.93c a lb.

U.S. equity markets continued to soar with all three major indexes closing at record highs Friday on favorable U.S. economic data and strong fourth-quarter corporate reports, which prompted a strong showing by banking sector stocks. The Dow Jones Industrial Average jumped 228.46 points to 25,803.19. The Standard & Poor’s 500 Index advanced 18.68 points to close at 2,786.24. The Nasdaq Composite Index climbed 49.28 points to 7,261.06.

Crude oil futures closed at fresh three-year highs Friday on weakness in the dollar and ongoing support from supply curtailment, geopolitical concerns and increasing demand. February light, sweet crude oil gained 50c to close at $64.30 a barrel.

The U.S. dollar closed at its lowest level since December 2014 Friday as forecasts for improved growth in Europe attracted investors to the euro.

Gold futures closed higher Friday for the third consecutive session and the fifth consecutive week on continued weakness in the U.S. dollar and indications of slightly stronger inflation in the United States. The February contract advanced $12.40 to $1334.90 an oz.

Recap for January 11

A day after closing lower, U.S. markets were buoyed Thursday by energy companies amid rising oil prices. Energy companies on the S&P 500 could see another big boost in the coming weeks, as they are expected to more than double their fourth-quarter earnings from the year-earlier period. The Dow Jones Industrial Average added 205.60 points to 25,574.73. The Standard & Poor’s 500 Index advanced 19.33 points to close at 2,767.56. The Nasdaq Composite Index climbed 58.21 points to 7,211.78.

Crude oil futures closed higher Thursday. The February light, sweet crude oil future gained 23c to close at $63.80 a barrel.

Wheat and soy complex futures closed lower Thursday while corn futures were nearly flat as market participants eagerly awaited a series of U.S.D.A. reports on Friday, with soybean futures pressured by forecasts of higher soybean production in Brazil. Minneapolis March wheat closed 5c lower at $6.29 a bu. Kansas City March wheat lost ¼c to $4.40¼ a bu. Chicago March wheat declined 1c to close at $4.33¼ a bu. March corn lost ¼c to $3.49 a bu. January soybeans dropped 6½c to close at $9.40½ a bu. January soybean meal lost $3.30 to close at $309.60 a ton. January soybean oil declined 0.32c to 32.97c a lb.

The U.S. dollar closed slightly lower Thursday.

Gold futures closed higher Thursday. The February contract advanced $3.20 to $1,322.50 an oz. 

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

 

 


The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.