(Investing.com) – U.S. soybean futures fell to a five-week low on Monday, as ample global supplies and a broadly stronger U.S. dollar weighed.
On the Chicago Mercantile Exchange, US soybeans for May delivery dipped 0.28 cents, or 0.03%, to trade at $9.7313 a bushel during U.S. morning hours after hitting an intraday low of $9.6740, a level not seen since February 11.
The May soybean contract tumbled 16.4 cents, or 1.67%, on Friday. Prices of the oilseed slumped 13.63 cents, or 1.08%, last week, the second straight weekly loss, amid optimism over the outlook for global supplies
The U.S. Department of Agriculture left its forecast for domestic soybean stocks at the end of the 2014-15 season unchanged at 385 million bushels earlier in the month.
According to the agency, global soybean ending stocks were expected to total 89.5 million tons, up from 89.26 million tons estimated last month.
Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 100.35 after rallying to 100.71 earlier, the highest level since April 2003.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Demand for the dollar continued to be underpinned amid expectations for higher interest rates in the U.S. as early as in June.
Meanwhile, US corn for May delivery shed 2.02 cents, or 0.53%, to trade at $3.7838 a bushel. Prices fell to a session low of $3.7760 earlier, the weakest level since February 3.
On Friday, US corn for May delivery tumbled 8.0 cents, or 2.06%, to close at $3.8040. The May corn contract ticked down 5.62 cents, or 1.36%, last week, the second consecutive weekly decline.
The USDA said that U.S. corn inventories at the end of the 2014-15 season in August will total 1.777 billion bushels, down 50 million bushels from a previous estimate of 1.827 billion bushels.
The agency also projected global ending corn stockpiles at 185.28 million metric tons for the 2014-15 season, down from a previous forecast of 189.64 million tons.
Elsewhere on the Chicago Board of Trade, US wheat for May delivery dipped 1.48 cents, or 0.29%, to trade at $5.0013 a bushel.
The May wheat contract rose 17.0 cents, or 3.94%, last week, as prices remained supported after the USDA lowered its outlook for domestic and global supplies earlier in the week.
Domestic wheat reserves in the season ending in May were expected to total 691 million bushels, down slightly from last month’s forecast of 692 million.
According to the USDA, global ending wheat inventories will total 197.71 million tons, down from a forecast of 197.85 in February.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.
