Wheat eases on global supply pressure, corn dips after rally
SINGAPORE: US wheat futures lost ground on Thursday, slipping for four out of six sessions and trading near contract lows made earlier this week as record world supplies added pressure on prices.
Corn ticked lower after climbing 0.8 percent in the previous session as a recovery in demand supported prices, while soybeans eased with focus on improved weather in Argentina.
"Supplies are in abundance when you look at wheat, corn and soybeans," said one Singapore-based grains trader. "The next year is also looking good as far as production is concerned."
The Chicago Board of Trade December wheat contract was down 0.7 percent at $4.13-3/4 a bushel, by 0356 GMT, after hitting a contract low on Tuesday at $4.05-1/4 a bushel.
Corn fell 0.1 percent to $3.53 a bushel, and soybeans were little changed at $9.92-1/4 a bushel.
The wheat market is facing headwinds from abundant global supplies. Prospects for Russia to produce another big wheat harvest in 2018 added to the bearish sentiment.
In the first major estimate for the coming year, agriculture consultancy SovEcon forecast Russia's 2018 wheat crop at 76.7 million tonnes, which would be the country's second-largest after a record 83.9 million tonnes this year.
In the corn market, expectations of higher demand underpinned prices.
China has bought around 10 to 12 cargoes of mainly US corn in the past month, three trade sources said, and is set to step up purchases as a record spread between domestic and international prices encourages buyers to seek out cheap imports.
The US Department of Agriculture confirmed on Wednesday that private exporters sold 101,600 tonnes of US corn to unknown destinations for delivery in the 2017-18 marketing year started Sept. 1.
Rains in parts of Argentina have reduced concerns over crop development although more moisture is needed.
Brazilian analysts are likely to raise their soybean output forecasts in coming weeks as climate fears have subsided and the crop is developing well, four consultancies told Reuters this week.
Brazil, the world's largest exporter of the oilseed and the No. 2 producer after the United States, is expected to harvest 109.43 million tonnes of beans in the 2017/18 cycle, based on an average of forecasts compiled in a recent poll.
Commodity funds were net buyers of Chicago Board of Trade corn, wheat and soymeal futures contracts on Wednesday and small net sellers of soyoil and soybean futures, traders said.