PARIS/SINGAPORE: Chicago wheat lost more ground on Monday, falling for a second session as abundant global supplies make it hard for US exporters to win business.
Corn slid, tracking wheat, while soybean was pressured by disappointing export sales.
“The US wheat futures markets returned from the Thanksgiving holiday to be greeted by disappointing news on US exports,” said Tobin Gorey, director of agricultural strategy at Commonwealth Bank of Australia.
“The market seems to have lost patience and concluded the US is simply not going to export enough wheat.”
The Chicago Board of Trade’s most-active wheat contract lost 0.6 percent to $4.32-1/4 a bushel by 1140 GMT. Corn gave up 0.3 percent to $3.41-1/4 and soybeans dropped 0.1 percent to $9.92-1/4.
Chicago wheat futures are being weighed down by US weekly export sales that fell below a range of trade expectations.
The US Department of Agriculture reported export sales of old-crop US wheat in the latest week at 199,845 tonnes, the smallest tally in six weeks. Analysts had expected sales of 350,000 to 550,000 tonnes.
“Disappointing US export figures have caused US wheat price to slide further,” Commerzbank said in a note. “Just like European wheat, US wheat is facing tough competition, especially from Russian wheat.”
The USDA reported weekly export sales of US corn at 1,106,400 tonnes (old and new-crop years combined), in line with trade expectations.
The agency’s weekly sales tally for soybeans fell below 1 million tonnes, missing a range of trade expectations. Export sales of soymeal, at 379,800 tonnes, topped expectations.
World soyoil prices will fall after India’s decision this month to raise an import tax on edible oil to the highest level in more than a decade, Argentina’s export industry chamber said on Friday.
The tax increase, announced on Nov. 17, put India, the world’s top soyoil importer, at odds with leading exporter Argentina.
Argentina on Friday authorised use of genetically modified soybean seeds resistant to herbicides other than glyphosate, while the European Union (EU) continues to debate whether to extend the licence of weed-killers containing the ingredient.
A decision on glyphosate’s licence renewal in the EU was expected later in the day.
Commodity funds were net sellers of Chicago Board of Trade wheat, corn, soybean, soymeal and soyoil futures contracts on Friday, traders said.
Source: Brecorder.com
