Investing.com - U.S. wheat futures fell to a contract low on Friday, before rebounding slightly as investors returned to the market to seek cheap valuations.
On the Chicago Mercantile Exchange, US wheat for May delivery inched up 2.0 cents, or 0.42%, on Friday to settle at $4.8240 a bushel by close of trade.
Earlier in the day, wheat prices touched $4.7840, the lowest level on record, as concerns over ample global supplies and indications of reduced demand for U.S. wheat weighed.
A broadly stronger U.S. dollar also weighed. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, jumped 1.39% to 97.74 late Friday, the highest since September 2003.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
On the week, the May wheat contract tumbled 31.5 cents, or 5.81%, the worst weekly loss since September.
Meanwhile, US corn for May delivery dipped 4.4 cents, or 1.15%, on Friday to close at $3.8600 a bushel. Prices touched an intraday low of $3.8320 earlier, the weakest level since February 26, as weakness in wheat spilled over.
Wheat and corn prices are linked because both can be used as animal feed.
For the week, the May corn contract ticked down 6.76 cents, or 1.53%.
Elsewhere on the Chicago Board of Trade, US soybeans for May delivery fell to $9.7660 a bushel on Friday, the lowest since February 12, before ending down 0.4 cents, or 0.05%, at $9.8500, as concerns over Brazilian export prospects eased.
The May soybean contract slumped 44.74 cents, or 4.37%, last week, the first weekly loss in five weeks, as a two-week strike by Brazilian truck drivers appeared to be coming to an end.
Brazil is a major soybean exporter and competes with the U.S. for business on the global market.
In the week ahead, market players will focus on the release of the U.S. Department of Agriculture's world supply and demand report on Tuesday, March 10.
The agency will also produce data on crop progress and weekly export sales figures.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.