Chicago | Reuters — U.S. wheat and corn futures fell on Wednesday, pressured by plentiful world feedgrain supplies and profit-taking following light rallies a day earlier, traders said.
Soybean futures ended modestly higher after a choppy session, supported by fresh export demand for U.S. soy and worries about South American crop weather.
Chicago Board of Trade wheat for March delivery settled down 5-3/4 cents at $4.01 per bushel (all figures US$). March corn ended down 2-1/2 cents at $3.58 a bushel while January soybeans finished up 1-1/4 cents at $10.49 a bushel.
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U.S. grains: Corn rebounds from contract lows on short covering, bargain buying
Bargain buying and short covering lifted U.S. corn futures on Monday after the market slid to contract lows on expectations for strong U.S. output, traders said.
Wheat posted the biggest percentage decline, with the March contract retreating after reaching its highest level in nearly a week on Tuesday.
“There is nothing bullish in the wheat market to get traders excited,” said Terry Reilly, analyst with Futures International, leaving the market to struggle with a bearish fundamental outlook characterized by huge global supplies.
Statistics Canada on Tuesday put the Canadian all-wheat crop at 31.7 million tonnes, up 15 per cent from last year and exceeding the average trade expectation of 30.7 million tonnes.
Australia, another major supplier, this week raised its official forecast for 2016-17 wheat production to a record 32.64 million tonnes.
“There seems to be no end to the bearish news on the wheat market,” Commerzbank said in a research note.
Corn eased as U.S. producers sold scattered volumes of grain, taking advantage after the March contract on Tuesday touched $3.64 a bushel, its highest level in about four weeks.
Crop prospects in South America remained a focus.
“Dryness in Argentina is a concern, but excellent conditions in Brazil may dampen the impetus to push (corn) prices higher,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
Soybeans closed higher in rangebound trade, lifted by worries about dry weather in Argentina and confirmation of fresh U.S. export sales. The U.S. Department of Agriculture said private exporters in the last day sold 466,000 tonnes of U.S. soybeans to China and unknown destinations.
Traders were also adjusting their positions ahead of USDA’s monthly supply/demand report for December, due Friday.
Analysts surveyed by Reuters on average expect the government to lower its forecast of U.S. 2016-17 soybean ending stocks and leave its figures for corn and wheat ending stocks nearly unchanged.
— Julie Ingwersen is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.
