SINGAPORE/PARIS: Chicago wheat futures slid on Tuesday, with the market facing pressure from leading importer China cancelling more US cargoes amid plentiful world supplies.
Corn prices 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) slipped 0.1% to $5.46-1/2 a bushel, as of 1230 GMT. Corn fell 0.3% to $4.40-1/4 a bushel, while soybeans added 0.2% to $11.81-3/4 a bushel.
“Favourable wheat supply outlook continues to weigh on prices,” Commzerbank sid in a note, pointing to hefty supplies from the Black Sea region.
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.
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