US wheat futures fell 2 percent to their lowest in nearly three weeks on Monday, weakening on technical sales after firming briefly during the overnight trading session. Corn and soyabean futures also dropped to multi-week lows, with traders noting some end-month liquidation by investment funds. Both wheat and corn futures were on track for their third straight session of declines.
Wheat notched the biggest declines, with benign weather for crop development bolstering expectations that the upcoming harvest of the winter crop in the northern hemisphere will add to already ample supply. "If you look at the weather, there just is not anything to hang your hat on the friendly side," Northstar Commodity Investment Co chief analyst Mark Schultz said.
At 10:55 am CST (1655 GMT), the most actively traded Chicago Board of Trade May soft red winter wheat contract was down 8-1/2 cents at $4.39-1/2 a bushel. It hit its lowest since February 7. CBOT May wheat firmed during the overnight session but turned lower after failing to hold support above its 30-day moving average. Losses accelerated after the contract dropped below its 40-day moving average before finding support near its 50-day moving average. "It went down with ease so far today," Schultz added. "That is probably the biggest concern."
CBOT May corn futures were down 2 cents at $3.68-3/4 a bushel, hitting its lowest since February 1., while CBOT May soyabeans were off 4-1/4 cents at $10.20 a bushel, hitting their lowest since January 12. Declines were limited in the soyabean market as farmers in Brazil have slowed sales of their record-large crop.
Comments
Comments are closed for this article.