Wheat tumbled nearly 2 percent and corn and soyabeans eased off early highs on Thursday, when traders found little encouraging news in a US government crop report. The US Department of Agriculture report cut crop and supply forecasts in line with expectations, setting off volatile trading. US end-of-season wheat stocks came in below estimates at 845 million bushels, but world wheat stocks will still swell to record proportions this year, according to the report.
"Increasing world projected (wheat) carryout by almost 3 million tonnes, how ugly can it get?" said Tom Fritz of EFG Group in Chicago. "And I think that in turn weighs on corn prices." Chicago Board of Trade March wheat shed 10-1/2 cents or 1.6 percent to $6.50-1/4 per bushel at 11:53 am CST (1753 GMT). Chicago corn for March delivery lost 1/4 cent to $6.42 per bushel, giving up a nearly one-month high.
Wheat felt additional pressure from unwinding of spreads against corn, traders said. Meanwhile, the initial rally in corn prices was due to investors buying nearby corn and selling deferred months on tight cash supplies, Fritz said. USDA said drought severely stunted South America's corn and soyabean crops, although not quite as badly as expected, and the agency predicted larger US corn exports to fill the gap on world food markets.
Comments
Comments are closed for this article.