By Jeff Wilson June 4 (Bloomberg) -- Wheat fell to a three-year low, corn touched the lowest price since October and soybeans dropped the most in four weeks as slower-than-expected U.S. job growth revived concern that demand for crops will weaken. The Reuters/Jefferies CRB Index of 19 commodities fell the most in three weeks after the Labor Department said the U.S. added 431,000 jobs in May. Economists expected a 536,000 gain, according to the median forecast in a Bloomberg News survey. The dollar surged to a four-year high against the euro, reducing the appeal of commodities as an alternative investment. “The disappointing jobs report underscores the global economy still remains soft,” which may curb demand for food, livestock feed and biofuel, said Dale Durchholz, the senior market analyst for AgriVisor LLC in Bloomington, Illinois. “The bearish commodity story will end only when the dollar reaches a peak, and that may require coordinated central bank policies.” Wheat futures for July delivery fell 6 cents, or 1.4 percent, to $4.3575 a bushel on the Chicago Board of Trade, after touching $4.35, the lowest level for the most active futures since April 2007. The price slipped 4.8 percent for the week, the second straight decline. Corn futures for July delivery fell 9.5 cents, or 2.7 percent, to $3.40 a bushel in Chicago, after touching $3.3975, the lowest level since Oct. 5. Prices fell 5.3 percent this week and are down 18 percent this year, as rapid planting of the U.S. crop and warm, wet weather boost the yield potential. Soybean futures for July delivery fell 20 cents, or 2.1 percent, to $9.35 a bushel on the CBOT, the biggest decline since May 6. The price has fallen for six straight weeks, down 11 percent this year, on forecasts that Brazil and Argentina, the biggest exporters after the U.S., will boost combined output by 36 percent to a record. Export Sales Corn and soybean prices also fell on slowing overseas demand for U.S. supplies, said Mike Zuzolo, the president of Global Analytics & Consulting Inc. in Lafayette, Indiana. U.S. exporters reported corn sales fell 81 percent to 198,700 metric tons in the week ended May 27, the smallest tally since the start of the marketing year Sept. 1, the Department of Agriculture said today in a report. Included in the weekly report were cancellations of 233,300 tons sold to unknown destinations. Export sales of soybeans fell 23 percent to 135,000 tons, the USDA said. Sales for delivery after the harvest begins Sept. 1 were 13,100 tons, down from 120,000 tons a week earlier. Imported soybeans at China’s Shandong province ports are being held up as storage capacity is “full,” the China National Grain & Oils Information Center said today. “There were no new corn or soybean sales to China last week and that was a disappointment,” Zuzolo said. “The combination of slowing exports and worries about the global economy” triggered selling in the grain markets, Zuzolo said. Corn is the biggest U.S. crop valued at $48.6 billion last year, followed by soybeans at $31.8 billion, government figures show. Wheat is fourth after hay. To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net

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