Wheat slips on supply concerns; corn, soy also ease
U.S. wheat futures eased to a four-session low on Tuesday, falling from a two-week high hit in the previous trading session, on the back of supply concerns and a post-rally adjustment.
Corn also fell to a four-day low, while soybeans were in line for a second day of losses.
The most active wheat futures on the Chicago Board of Trade fell 0.4% to $5.05-1/2 a bushel around 0300 GMT, down from its previous session’s high of $5.31-1/2 – the highest since June 28.
“The market came up last week on USDA, but that was always going to be beyond what was reasonable. We’re still going to have the biggest wheat crop the world has ever seen next year,” said Ole Houe, director of advisory services at brokerage IKON Commodities, referring to last week’s data release from the U.S. Department of Agriculture.
“The knee-jerk rally last week was out of order and not right, we’re just adjusting this week.”
The USDA last week lowered its forecast of 2019/20 global wheat ending stocks to 286.46 million tonnes, from 294.34 million in June and near the low end of a range of analyst expectations.
The most active corn futures on the Chicago Board Of Trade were down 0.5% at $4.44-3/4 a bushel around 0300 GMT, having closed down 2.7% in the previous session. Prices hit a five-year high of $4.64-3/4 a bushel on Monday on concerns about hot, dry weather, but turned lower on forecasts for rain.
The most active soybean futures were also down 0.5% at $9.15-1/4 a bushel, having closed down 1.2% on Tuesday.
The USDA said in a weekly report that 58% of the corn crop is good-to-excellent, ahead of market expectations of 56%.
It said 76% of the U.S. wheat crop is in good-to-excellent condition, down 2 percentage points and behind market expectations.
The USDA report said 54% of the U.S. soybean crops are in good-to-excellent condition, slightly ahead of market forecasts.
Source: Reuters (Reporting by Colin Packham and Emily Chow; editing by Richard Pullin and Gopakumar Warrier)