US corn and soya ended lower on Thursday as weak fundamentals and concerns over global growth returned to weigh on markets that were lifted a day earlier when central banks intervened in the eurozone crisis. "Export sales were poor for corn and beans, we're looking for larger South American production and weather is good in South America and the US," said Terry Reilly, analyst for Citigroup.
Further bearish input stemmed from China's manufacturing sector, which contracted in November to raise fresh concerns over its economy and the country's status as the world's top buyer of soya and a potential big importer of corn. Corn and soyabeans were trading under the weight of poor export demand amid strong competition from low-cost producers like Ukraine and prospects of bumper soyabean and corn crops in South America.
"We have not fixed the export issue in corn, so that is a concern," said Rich Nelson, director of research for Allendale Inc. "Corn sales were 61 percent below the five-year average." US government data on Thursday showed that corn sales last week were near the low end of trade estimates. Wheat staged a late bounce and ended firm on good export demand for top quality wheat such as spring wheat traded on the Minneapolis Grain Exchange (MGEX).
"Fundamentals are pretty bearish right now and any export business for wheat is in the higher quality wheat," Reilly said. The US government on Thursday said just over a half million tonnes of US wheat were sold for export last week and over 70 percent of the total was top quality spring, white or durum wheat. CBOT March wheat was up 1/4 cent at $6.14-1/4, January soyabeans were down 3-1/4 at $11.28 and March corn was down 6-1/2 at $6.01-1/2.
Top quality spring wheat traded on the MGEX for March delivery was up 8-3/4 at $8.32-1/4 and KCBT hard red winter wheat for March ended up 8 at $6.69. While the weak dollar limited losses, traders and analysts said Europe's debt crisis continued to inhibit buying in grains.
Soyabean traders were watching developments in the key South American producers, which will harvest in early 2012. Argentina's 2011/12 soya crop should reach 52 million tonnes, up from 49.4 million tonnes harvested in the previous season, the head of the Acsoja industry group said on Wednesday. But traders noted that was down from October forecasts of around 53 million tonnes.
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