Tuesday, 10 November 2015 00:02
CHICAGO: US wheat futures dropped more than 2 percent on Monday on profit taking and improving weather in some key wheat producing areas amid concerns that increasing global supplies will clamp down on U.S. wheat export demand.
Corn futures fell for a third straight session and hit a two-month low on spillover pressure from wheat and on lackluster export sales. Soybeans were narrowly mixed as traders squared positions ahead of a monthly U.S. Department of Agriculture monthly supply and demand report on Tuesday.
Chicago Board of Trade December soft red winter wheat tumbled 12-1/4 cents, or 2.3 percent, to $ 5.11 a bushel by 11:00 a.m. CST (1700 GMT).
CBOT December corn fell 3-3/4 cents, or 1 percent, to $ 3.69-1/4 a bushel, its lowest point since Sept. 11. January soybeans gained 3/4 cent to $ 8.68 a bushel.
“The market’s feeling some pre-report jitters today,” said Mike Zuzolo, president of Global Commodity Analytics.
“The spreads are very active in the wheat market where we had charged up the wheat/corn spread and gotten it to $ 1.50. They’re taking profit on that with the idea that wheat supplies may be increasing globally,” he said.
A surge in the dollar index to its highest in more than six months on Friday, following U.S. jobs figures that fueled expectations of an interest rate rise next month.
The dollar eased back slightly on Monday, giving some respite to U.S. crop commodities that are fighting for export sales in a well-supplied world market.
The market’s focus is turning to Tuesday’s monthly USDA supply and demand reports. Analysts expect the government to slightly raise its U.S. corn and soybean production and ending stocks forecasts and possibly trim some corn demand figures, particularly exports.
U.S. corn export sales are lagging last year’s pace by more than 30 percent, weighed down by a strong dollar and abundant global supplies. The USDA on Monday said just 295,701 tonnes of corn were inspected for export last week, well below the range of trade expectations for 475,000 to 600,000 tonnes.
Soybean exports, however, have been less disappointing, with sales to date lagging the year ago pace by 22 percent and amid a steady stream of daily sales announcements.
USDA on Monday reported new sales of 126,000 tonnes of U.S. soybeans to unknown destinations.
