US wheat futures fell more than 2 percent on Wednesday on forecasts for much-needed moisture in the southern Plains, analysts said. Corn and soyabean futures also declined as traders adjusted positions ahead of key crop data due on Thursday from the US Department of Agriculture.
As of 12:05 p.m. CDT (1805 GMT), Chicago Board of Trade March wheat was down 10-1/2 cents at $4.16-1/4 per bushel after dipping to $4.12, its lowest in a week. CBOT March corn was down 4-3/4 cents at $3.53-1/2 per bushel and March soyabeans were down 6-1/2 cents at $10.07-1/4 a bushel.
Wheat posted the biggest decline on a percentage basis, pressured by expectations that weekend storms would help recharge soil moisture in Oklahoma and Kansas, where dry conditions have stressed dormant hard red winter wheat crops. Precipitation totals over the next five days could reach 2 to 4 inches or more on the southern Plains, the US Department of Agriculture said in a daily weather bulletin.
Tom Fritz, a partner with EFG Group in Chicago, said "It's the forecast for some pretty decent moisture for the hard red winter wheat areas. You've elected sell-stops, and that spills over into corn and the bean complex." Corn and soyabeans followed wheat lower, with investors stepping to the sidelines ahead of the release of several US government crop reports.
The USDA will release a series of reports on Thursday at 11 a.m. CST (1700 GMT), including US quarterly grain stocks, US annual crop production, US winter wheat seeding and its monthly World Agricultural Supply and Demand Estimates (WASDE). "Soyabeans, wheat and corn are weaker today as people take risk off the table ahead of the USDA report on Thursday," said Graydon Chong, senior commodity analyst with Rabobank. In other news, China raised dumping tariffs on imports of US distillers' dried grains, an animal feed ingredient derived from corn, from levels first proposed last year, in a major victory for China's fledgling ethanol industry.
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