By Rudy Ruitenberg and Jae Hur May 14 (Bloomberg) -- Corn, soybeans and wheat fell in Chicago as the dollar strengthened for a fourth day, reducing U.S. crops’ appeal to investors and importers using other currencies. Corn for July delivery slid 1.3 percent to $3.68 a bushel on the Chicago Board of Trade at 1:23 p.m. Paris time. Soybeans for delivery in the same month slipped 0.8 percent to $9.5725 a bushel, and July-delivery wheat fell 0.7 percent to $4.7575 a bushel. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, gained as much as 0.8 percent, heading for a fourth weekly climb in a row. The euro fell below $1.25 on concern that Europe’s debt crisis will limit economic growth and earnings. “Very high U.S. stocks, favorable weather conditions and a dollar that’s up strongly” weighed on Chicago wheat prices, Paris-based farm adviser Agritel said in an online comment. “The weakness of the euro continues, and concerns are growing about the whole European economy,” Milling wheat traded on NYSE Liffe for November delivery rose 0.7 percent to 141 euros ($175.93) a metric ton. That compares with $174.80 a ton for July wheat in Chicago. Wheat for July delivery traded in the U.S. city has dropped 6.7 percent this week as the dollar advanced. Wheat Inventories “The global abundance of wheat has been well known in the market for some time and continues to weigh on prices,” said Toby Hassall, commodity analyst at CWA Global Markets Pty in Sydney. Wheat prices are “on the cusp” of a slump as rising European production and increased global stockpiles drive Chicago futures lower, according to Australia & New Zealand Banking Group Ltd. Prices in Chicago are likely to drop below $4.50 a bushel, and there’s a “possibility” the grain will return this year to a two-year low of $4.3925 reached in October, ANZ Agricultural Commodities Strategist Scott Briggs said by phone from Melbourne today. Soybeans fell for a third day after declining yesterday on speculation that record harvests in South America will reduce demand for U.S. supplies. The oilseed has slipped 0.4 percent this week. “Chicago soybean prices are facing a headwind of swelling global supplies and the seasonal switch to South American-origin beans in the export market,” said Hassall. Brazil and Argentina, the biggest soybean exporters after the U.S., will produce a combined 122 million tons (4.48 billion bushels) this year, up 36 percent from last year’s drought- reduced harvest, the U.S. Department of Agriculture said this week. World inventories are projected to rise 48 percent to a record 63.8 million tons. To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Rudy Ruitenberg in Paris at rruitenberg@bloomberg.net.

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