HAMBURG: Chicago wheat futures fell on Monday, as expectations of larger than expected world supplies pressured prices.
Corn and soybeans also fell, facing technical resistance as dealers waited for new indications of Chinese import demand for US supplies. Chicago Board of Trade most-active wheat had fallen 0.9% to $7.77-1/2 a bushel by 1228 GMT. Corn fell 0.5% to $5.86-3/4 a bushel, soybeans fell 0.7% to $12.58-1/2 a bushel. The US Department of Agriculture (USDA) last week raised its global wheat ending stocks view with improved production outlooks for Australia, Russia and Canada.
“Wheat is drifting down today on the continuing impact of the USDA’s optimistic outlook for world supplies,” said Matt Ammermann, StoneX commodity risk manager. “The question now is how much new import demand will be generated by the fall in wheat prices from their peaks in past weeks.”
He noted Algeria was back with a tender on Monday but the specifications favoured Russian supplies, helping to weaken European Euronext wheat and in turn undermining Chicago. “Attention is on whether the other large importers in the Middle East and North African will return to the world market with more tenders,” he said.
Soybeans and corn are making a hesitant start to the week, he said. Corn has faced resistance at around $5.90 and soybeans about $1,280-$1,290, and the impetus needed to test these levels is not yet visible today.