Wheat, corn ease further as pandemic risks rattle markets
- Wheat, corn down for second day to trade near multi-month lows
- Soybeans also ease back after bounce on Argentina export news
- Coronavirus spread beyond China adds to risk of demand hit
PARIS/SINGAPORE: Chicago wheat and corn futures fell for a second straight session on Thursday to trade near multi-month lows, as they were again pressured by investor fears of a coronavirus outbreak developing into a pandemic.
US soybeans also eased after a day-earlier bounce supported by news that rival supplier Argentina had suspended registration of agricultural exports.
Share and oil prices extended losses as a rising number of cases of the coronavirus beyond China fanned concern about a global epidemic that would dampen economic growth.
The number of new coronavirus infections inside China - the source of the outbreak - was for the first time overtaken by fresh cases elsewhere on Wednesday, with Italy and Iran emerging as epicentres of the spreading illness.
Economic disruption from the disease in China has cooled hopes of a rapid ramp-up in Chinese imports of US crops after a trade agreement between Beijing and Washington, while also taking attention away from brisk exports of US corn.
Grain markets will get an indication of export demand from weekly US export sales figures from the US Department of Agriculture due at 1330 GMT.
"There is downside in grains at least for the near term," said Ole Houe, director of advisory services at brokerage IKON Commodities.
"Agricultural markets are more driven by market sentiment due to the spread of the virus than the underlying supply and demand fundamentals."
The most active wheat contract on the Chicago Board Of Trade
had eased 0.8% to $5.31-3/4 a bushel by 1232 GMT, to approach a two-month low of $5.28-1/2 touched on Tuesday.
CBOT corn was down 0.5% at $3.72-1/2 a bushel, near Monday's three-month low of $3.70.
Soybeans were off 0.4% at $8.88-1/4 a bushel, giving up a similar-sized gain from Wednesday.
Chicago soybean prices were lifted on Wednesday by news that Argentina's ministry of agriculture had suspended farm export registrations until further notice, a move seen as heralding a rise in grain export tariffs in the debt-stricken country.
However, the prospect of a record Brazilian harvest flowing onto the market in the coming weeks was curbing US prices.
Wheat markets were weighing up brisk international demand, falling prices in the Black Sea region and contrasting harvest prospects in the northern hemisphere.