The strengthening dollar has weakened the competitiveness of U.S. soybeans, with soybean prices hovering near four-year lows

Daocheng Technology Financial News - due todollarThe strengthening has caused U.S. exports to become less competitive in a market with abundant supplies of cheap soybeans in South AmericafuturesPrices were hovering above four-year lows on Wednesday.

As of 19:50 Beijing time, Chicagofutures tradingThe main contract for soybeans in the CBOT was essentially flat at $11.4550 a bushel, but prices have fallen about 4% this month and are close to the four-year low of $11.29 set in February.

Vito Pistoia, an analyst at Rabobank, said the improved weather outlook in the US signalled higher soyabean yields, while falling prices for palm oil, a rival to soyabeans, also weighed on soyabeans.

Rabobank expects soybeans to trade around $11.50 a bushel on the Chicago Board of Trade by the end of the year, Mr. Pistoia said.

The dollar has surged since last week to its highest level against a basket of currencies since November 1, making US agricultural products more expensive for importers as US suppliers face stiff competition from South American corn, soyabeans and Russian wheat for global export sales.

Traders said CBOT speculators betting on falling prices for three crops were net sellers again on Tuesday.

The oilseed lobby group Abiove has raised its forecast for Brazil's 2023 soybean production and early-this-year stocks, stressing ample supplies.

As the world's largest soybean exporter, Brazil's soybean production is expected to decrease slightly this year, but Argentina's production is likely to increase.