Grain and soybean futures prices fell sharply Monday on the Chicago Board of Trade as the U.S. dollar continued its advance.
The surging dollar also took its toll on gold, which fell more than $12 with the February contacty at $282 an ounce on the Commodity Exchange in New York.
"The Deutsche mark--down; the Swiss franc, down sharply; the British pound, down. Those are the biggest factors in the market," said Richard Loewy, senior grain and oil seed analyst with Prudential-Bache Securities in New York.
Loewy explained that a strong dollar dampens the sale of American-grown produce in countries whose currencies are losing ground against the U.S. currency.