Commodities Prices Decline On Stronger Dollar

Mar 05, 2010

DENVER — Grain prices led a broad pullback in commodities Thursday as investors reacted to a rising dollar by pulling money out of futures. Improving weather forecasts for growing areas in the U.S. and South America added to the drop in agricultural futures.

Prices for grains, soybeans and corns, metals and energy all closed lower. They followed their pattern of moving in an opposite direction from the dollar. And the dollar was lifted by continuing concerns about Greece's ability to manage its debt problems.

The ICE Futures US dollar index, which measures the dollar against six other currencies, rose 0.5 percent.

Greece was able to raise badly needed cash by selling billions of dollars in bonds Thursday. Demand was strong, but the country was forced to pay a high yield of 6.3 percent. That puts pressure on the Greek government to accelerate its economic reform plans.

The continuing uncertainty sent the euro lower against the dollar. There's still some uneasiness in the markets about debt problems in other European countries including Spain. And the dollar benefits when the economic news turns negative because it's seen as a safer bet than commodities.

Futures are also hurt by the fact that commodities are priced in dollars and become more expensive to overseas buyers as the dollar climbs.

More upbeat forecasts for Midwestern and South American weather also sent grain prices lower, analysts said.

"It does not look as it's going to be quite as wet next week in the Midwest and that relieves some fears about too much rain as we go into spring planting season," analyst Vic Lespinasse with grainanalyst.com said.

Investors were also concerned that rainy weather might damage soybeans and corn in Brazil but the outlook now calls for better weather, Northstar Commodity analyst Jason Ward said.

"Wet weather down there has been plaguing their harvest so this drier outlook that you're getting for them is going to get their harvest back going," he said. "You're seeing that soybean market take it on the chin as a result of that better forecast."

Wheat for May delivery fell 13.5 cents to settle at $5.0225 a bushel. Corn for May delivery fell 3.75 cents to $3.83 a bushel and May soybeans fell 21.5 cents to close at $9.42 a bushel

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Video: The FCDC and AgSmart Bring Plant Breeding to a Wider Audience

In the vast prairies of Alberta, Olds College’s Field Crop Development Centre (FCDC) stands as a beacon of innovation and research in the agricultural world. The institution has become a key player in advancing agricultural technologies and practices. The FCDC’s commitment to applied research has driven them to seek effective means of disseminating their findings and creating a positive impact on the farming community.

One such avenue that aligns with their mission is AgSmart, an event dedicated to showcasing cutting-edge agricultural technologies. The coming together of the FCDC’s annual Field Day and Ag Smart has proved to be a natural fit, fostering a synergy that benefits both parties and propels the agriculture industry forward. The FCDC Field Day took part in conjunction with AgSmart for the first time this week on Aug. 1-2 in Olds, Alta. FCDC Program Director Kofi Agblor and Olds College VP of Development Todd Ormann sat down for an interview with Marc Zienkiewicz to discuss the significance of the two events taking part together and what the future holds.

The Intersection of Research and Technology The essence of the FCDC lies in its dedication to plant breeding and new seed varieties, particularly barley and triticale. While conducting research is essential, it becomes meaningful when its benefits are shared with the wider community. This is where AgSmart steps in, providing a key venue for the FCDC to showcase their research. This union between research and technology creates a holistic and enriching experience for farmers, ranchers, and industry professionals, the pair said.

Seeds as Technology For the FCDC, the partnership with AgSmart goes beyond mere event collaboration. It is about creating an environment that bridges the gap between seeds and smart technology, Ormann said. The college believes that for technology to truly revolutionize agriculture, it must begin with a strong foundation — high-quality seeds. As the saying goes, “it all starts with a seed.” To demonstrate this critical aspect, the collaboration aims to showcase the seed value chain as an integral part of the smartphone.

The Birth of a Powerful Alliance The idea of joining forces emerged when staff realized the potential synergy between AgSmart and the FCDC Field Day. With just a few days separating the two events, a proposal was put forward to merge them. The marketing and communications teams from both sides worked seamlessly to ensure the essence of both events remained intact, creating a powerful alliance that leverages the strengths of each, Agblor said.

Driving Advancements in Breeding For Agblor, the partnership with AgSmart has tremendous potential to drive advancements in breeding and other technology. With technologies like drones and imaging becoming integral to phenotyping, breeding is no longer confined to vast fields to assess thousands of plants manually. Instead, it benefits from the data-rich insights brought about by smart technologies. These advancements make breeding more efficient, precise, and instrumental in shaping the future of agriculture.

Overcoming Challenges Together While the partnership between Olds College and Ag Smart has been a resounding success, there are challenges on the horizon. Securing stable funding for long-term breeding initiatives is crucial to sustain progress. The college is committed to navigating these challenges and investing in agriculture’s future sustainably, Agblor said.