US wheat futures slid to a near two-month low on Wednesday, testing psychological support at the $5 per bushel mark, pressured by forecasts for rising global grain supplies and strong export competition, analysts said.
Soyabean and corn futures also declined as a speedy US planting pace supported expectations for large harvests. Traders shrugged off support from confirmation of fresh US soyabean sales to China.
As of 1:06 p.m. CDT (1806 GMT), Chicago Board of Trade July wheat was down 12 cents at $5.02-1/2 per bushel after dipping to $5.00-1/4, the contract's lowest level since March 18. CBOT July soyabeans were down 12 cents at $8.40 a bushel, and July corn was down 3-1/4 cents at $3.19 a bushel.
Wheat posted the biggest declines on a percentage basis. A day earlier, the US Department of Agriculture projected that global wheat stocks at the end of the 2020/21 marketing year would rise to a record-large 310.12 million tonnes, up from 295.12 million at the end of 2019/20.
The USDA projected reduced US wheat exports in 2020/21 compared to a year earlier, while exports from Russia, Argentina, Australia and Canada should rise.
Soyabeans fell as pressure from a strong US planting pace overshadowed support from export sales. The USDA confirmed private sales of 396,000 tonnes of US soyabeans to China, a day after reporting sales of another 136,000 tonnes to the world's top soya importer.
Weather forecasts in the Midwest crop belt were generally favorable for seeding. The USDA said the US soyabean crop was already 38% planted and the corn crop was 67% planted by May 10, both ahead of their respective five-year averages. Market players continued to digest Tuesday's USDA forecast for US corn stockpiles to top 3.3 billion bushels in 2020/21, the most in 33 years.
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