Wheat sinks further

04 Sep, 2015

US wheat futures sank to multiyear lows on Thursday, weighed down by ample supplies and weak demand for US exports, traders said. A hefty supply base also sparked a sell-off in corn, which hit its lowest level since mid-June, while soyabeans sagged on technical selling and rising harvest expectations. The Chicago Board of Trade reported heavy deliveries against expiring wheat and corn contracts on Wednesday evening, reflecting the easy availability of supplies on the cash market.
K.C. hard red winter wheat fell to its lowest price since April 4, 2007, during Thursday's trading session while CBOT soft red winter wheat hits its lowest level since June 30, 2010. Egypt's government buyer is holding an import tender on Thursday and traders are waiting to see if Black Sea origins continue their clean sweep of sales this season. There was no US wheat offered for sale in the deal.
CBOT December soft red winter wheat was down 11-1/4 cents at $4.67-3/4 a bushel at 11:02 am CDT (1602 GMT) while K.C. December hard red winter wheat dropped 6-1/2 cents to $4.68-1/4 a bushel. Both contracts set fresh lows on Thursday. The US Agriculture Department on Thursday morning said weekly export sales of wheat for 2015/16 shipment totalled 277,500 tonnes, near the low end of expectations. CBOT December corn was down 5-1/2 cents at $3.62 a bushel while CBOT November soyabeans were off 2-3/4 cents at $8.71-1/4 a bushel.
Forecasts for good weather that will help shepherd both corn and soyabean crops toward maturity around the US Midwest have bolstered harvest expectations. Private analytics firm Informa Economics raised its projections for corn and soyabeans on Thursday, the third closely watched company to issue a robust harvest outlook this week.

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