SINGAPORE: Chicago wheat futures slid on Tuesday, with the market facing pressure from leading importer China cancelling more US cargoes amid plentiful world supplies.
Corn lost ground, while soybeans ticked higher, with both markets likely to face headwinds from expectations of near-record South American production.
“Wheat prices are likely to fall further when you look at production prospects across the northern hemisphere,” said one Sydney-based analyst.
“Supplies are going to rise.”
The most-active wheat contract on the Chicago Board of Trade (CBOT) slid 0.1% to $5.46-1/2 a bushel, as of 0316 GMT.
Corn fell 0.2% to $4.40-3/4 a bushel, while soybeans added 0.3% to $11.82-1/4 a bushel. Falling Russian wheat export prices and high supply in the global market are reducing demand for US wheat.
Private exporters cancelled sales of 264,000 metric tons of US soft red winter wheat that had been booked for delivery to China, the US Department of Agriculture (USDA) confirmed on Monday.
It was the third cancellation in as many business days and the largest of the three, following two cancellations last week totalling 240,000 tons of soft red wheat sold to China.
About 4% of winter cereals in Russia are in “poor and sparse” condition, the Russian Grain Union said on Monday, compared with a typical rate of 6% at this stage of the season. Near-record Brazilian supplies are weighing on soybean prices.
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The USDA slightly lowered its Brazilian soybean crop forecast, but its outlook was above many private estimates and reminded dealers of plentiful South American supplies.
Sales of the 2023/24 soybean harvest in Brazil reached 36.6% of projected production, behind the historical average for the period but slightly ahead of last year at this time, according to agribusiness consultancy Safras & Mercado on Monday.
Commodity funds were net buyers of CBOT corn, wheat and soyoil futures contracts on Monday and net sellers of soybean and soymeal futures, traders said.
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