PARIS/BEIJING: US and European wheat futures fell about 1.5% on Monday as growing investor fears about a resurgence in coronavirus cases pushed prices further from last month's multi-year highs.
Corn and soybean futures eased back from multi-month highs struck on Friday, although losses were limited by weather risks in part of South America.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 1.5% at $7.63-1/4 a bushel by 1132 GMT, while Euronext March wheat was 1.4% lower at 274.50 euros ($309.39) a tonne.
Both markets, however, held above near two-month lows struck last week.
Wheat futures have pulled back from November's peaks as worries over the Omicron coronavirus variant and easing concerns about global wheat supply have encouraged selling.
"With the Omicron atmosphere pretty much all markets are in the red," Nathan Cordier of consultancy Agritel said. "There has already been a selling trend in wheat for the past four weeks."
US wheat range-bound on weather uncertainties
Crude oil shed around 3% and European share prices also fell as investors fretted over the economic impact of the Omicron variant that could strengthen a latest wave of coronavirus infections that has prompted renewed lockdown measures in Europe.
Rising forecasts for what are expected to be bumper harvests in Argentina and Australia also continued to curb wheat prices.
However, analysts said year-end selling fuelled by coronavirus worries was taking attention away from underlying wheat supply risks, with adverse crop conditions in the US Plains and export restrictions planned in Russia and Argentina.
CBOT corn was down 0.6% at $5.89-1/2 a bushel, after hitting a 5-1/2 month top on Friday. Soybeans ticked down 0.2% to $12.83-1/4 per bushel, after reaching a three-month top in the previous session.
Soybeans were pressured by losses in vegetable oil markets like soyoil. The coronavirus outlook was threatening demand for biofuel while India's move to suspend futures trading for a year in key farm commodities also raised uncertainty.
However, dry conditions in southern Brazil and Argentina were maintaining uncertainty about corn and soybean production potential.
Strong Chinese demand for soybeans and feed grains were also underpinning crop markets.
Comments
Comments are closed.