SINGAPORE: Chicago corn, wheat and soybeans slid on Thursday, as growing concerns over global economic slowdown weighed on commodity markets, although losses were limited by hot weather conditions curbing US and European crop prospects.
The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.3% at $6.68-1/4 a bushel, as of 0320 GMT.
The contract was set for a third consecutive day of losses. Soybeans also lost 0.3% to $14.18 a bushel, after three sessions of losses. Meanwhile, wheat gave up 0.1% to $8.30-1/2 a bushel. Global markets are being weighed down by fears of recession, which dragged down stocks and commodities.
Asian stocks slid and the dollar spiked on Thursday following concerns about aggressive rate hikes from global policymakers.
Oil prices also fell in early Asian trade on Thursday, led lower by increased supply and worries that the global economy could slow further with renewed restrictions to curb COVID-19 in China.
CBOT corn may rise into $6.90-3/4 to $6.99-1/2 range
However, expectations of lower US production are supporting corn prices.
Advisory service Pro Farmer last week estimated the US corn yield at 168.1 bushels per acre, well below the USDA’s forecast of 175.4.
The Pro Farmer harvest projection followed a four-day Midwest crop tour that showed the effects of hot, dry weather in some areas.
For soybeans, Pro Farmer predicted US crop of 4.535 billion bushels, close to the USDA’s August forecast of 4.531 billion bushels.
For corn and wheat futures, worries about shipments from war-torn Ukraine are likely to support prices.
Grain silos in Ukraine’s second-biggest port, Mykolaiv, were hit by Russian shelling of the city on Tuesday, causing a fire that was still burning on Wednesday, Ukraine’s emergencies service said.
Additionally, the US Department of Agriculture (USDA) confirmed private sales of 167,000 tonnes of US soybeans to China, the latest in a series of US soy sales announcements in the last two weeks.
The USDA said on Wednesday it would not publish weekly export sales data for crops such as corn, soybeans and wheat until Sept. 15 at the earliest, leaving grain traders in the dark about overseas demand.
It is struggling to launch another reporting system for the data, which has a week-long delay and is analysed by traders and farmers.
Commodity funds were net sellers of CBOT soybean, corn and soymeal futures contracts on Wednesday and net buyers of wheat and soyoil futures, traders said.
Source: Brecorder
