CHICAGO: Chicago Board of Trade wheat futures slid on profit-taking on Wednesday, traders said, after prices climbed this week to their highest level since 2012 on tightening world supplies and robust demand.
Losses also hit the corn market, which retreated after rising on Tuesday to its highest price since Aug. 12.
Wheat futures had recently surged on a flurry of export deals to buyers including Saudi Arabia and Egypt and on concerns about poor spring wheat harvests. The gains had helped to support the neighboring corn market, as both grains are used for animal feed. “The corn market has become overbought,” said Tomm Pfitzenmaier, analyst for Summit Commodity Brokerage in Iowa.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 8 cents at $7.83-1/2 a bushel by 10:45 a.m. CDT (1545 GMT), after hitting a December 2012 high of $8.07 a bushel on Tuesday.
Corn lost 8-1/4 cents to $5.64-3/4 a bushel, and soybeans were down 14 cents at $12.30 a bushel. The wheat market may resume its rally after taking a breather from price gains, some traders said.
“So long as there are no signs of demand being slowed by the elevated price level, we believe that further highs are on the cards,” Commerzbank said in a note.