US corn futures fell to their lowest level in seven months on Wednesday and spot soyabean futures hit a 5-1/2 month low on ample global supplies and dimming prospects for US export business, analysts said. Wheat also declined, with Chicago Board of Trade futures hitting a one-month low while K.C. and Minneapolis Grain Exchange futures set across-the-board contract lows.
As of 12:42 p.m. CDT (1742 GMT), CBOT benchmark July corn was down 3-1/4 cents at $3.57 a bushel after hitting a contract low at $3.56. May corn dipped to $3.46-3/4, the lowest spot price on a continuous chart since Sept. 20. CBOT July soyabeans were down 6 cents at $8.69-1/2 a bushel and July wheat was down 7 cents at $4.38.
Commodity funds held a record-large net short position in CBOT corn futures by April 16, data from the US Commodity Futures Trading Commission showed, and traders said funds have expanded that position in the days since. Funds also hold sizable net short positions in soyabeans and wheat futures, betting on further market declines.
Traders seemed unconcerned by wet conditions in the Midwest that have slowed the start of spring planting. Ample soil moisture could benefit crops later, Feltes noted. And the spread of African swine fever in China's hog herd has reduced demand for soyameal, a protein-rich animal feed. CBOT wheat slipped on strong Northern Hemisphere crop prospects as well as a stronger dollar, which tends to make US grains less competitive globally.
The US dollar index reached its highest mark since June 2017 after data showing a surprise deterioration in business morale in Germany stoked fears of slowing global growth. Statistics Canada projected total Canadian wheat plantings for 2019 at 25.7 million acres, up 4% from a year ago and exceeding the average trade expectation.