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Oct 22, 2014

Mega harvest leaves U.S. farmers battling bugs in storage bins

CHICAGO (Reuters) – With record harvests depressing prices, U.S. farmers are holding tight to their corn and soybeans and binging on chemicals that protect stored grain from critters or even leaving corn standing in fields over winter to avoid storage charges.

Still flush with cash after years of record income and with shipping rates near record highs, farmers have resources to store grain rather than sell into a down market.

Oct 10, 2014

U.S. corn, soybeans drop ahead of USDA report

CHICAGO, Oct 10 (Reuters) – U.S. corn and soybean futures
fell sharply on Friday as investors staked out positions ahead
of a key government report that was expected to boost already
record forecasts for the U.S. harvests of both crops, traders
Wheat futures were slightly firmer, stabilizing after
falling nearly 3 percent on Thursday. Signs of strong global
demand lent support to wheat prices.
But the market was mostly focused on the upcoming government
reports. The U.S. Agriculture Department will release its
monthly supply and demand reports, as well as crop production
forecasts, at 11 a.m. CDT (1600 GMT).
“The day has arrived, and the trade is clearly fearful of a
bearish report,” Matt Zeller, director of market information at
INTL FCStone, said in a note to clients.
Chicago Board of Trade corn for December delivery was
down 5-1/4 cents at $3.39-1/2 a bushel at 9:45 a.m. CDT (1445
GMT). CBOT November soybeans were 12-1/4 cents lower at
$9.29-3/4 a bushel.
Investors shrugged off the harvest delays, and forecasts for
more rain in southern areas of the U.S. Midwest, that have
provided some support to prices over the past week.
Despite the recent delays, the huge harvest was expected to
quickly replenish tightness in the supply chain in the coming
“While the slow pace of harvest helped ease hedge pressure a
bit, traders mostly expect another increase in production from
USDA this morning,” Bryce Knorr, senior editor at Farm Futures
Magazine, said in a note. “While the overall outlook from USDA
may not grow much more bearish today, a huge crop still
threatens burdensome supplies.”
CBOT December wheat was 1-3/4 cents higher at $4.95 a
A wheat tender on Friday by Egypt, the world’s top importer
of the cereal, is being watched as a test of U.S. price
competitiveness against western European and Black Sea origins.

The tender could see Russian wheat back into contention
after missing out in the most recent Egyptian tenders, following
a three-week drop in Russian prices, traders said.

Oct 9, 2014

Wheat breaks win streak before USDA report; corn, soy firm

CHICAGO, Oct 9 (Reuters) – U.S. wheat futures fell 2.7
percent from four-week highs on Thursday, with investors
focusing on poor demand and plentiful global stocks ahead of a
key government report, traders said.
Corn and soybeans firmed, with corn on track for its seventh
straight day of gains. Both commodities received support from
harvest delays in eastern areas of the U.S. Midwest that delayed
the long-awaited replenishment of supplies at processors and
The setback in wheat followed six straight days of gains
that added 6.3 percent to the benchmark Chicago Board of Trade
December soft red winter wheat contract.
“The U.S. Agriculture Department (on Friday) is going to
remind us of a world that is flush with wheat,” said Tom Fritz,
a partner with EFG Group in Chicago. “We have seen the short
covering – it came and it went.”
The monthly supply and demand report was expected to show
that 2014/15 U.S. ending stocks of wheat would be 704 million
bushels, up 6 million bushels from the government’s estimate of
a month ago and well above the 590 million bushels left over at
the end of the 2013/14 crop year. Global wheat
end stocks were estimated to come in at a robust 196.38 million
CBOT December soft red winter wheat was down 13-3/4
cents at $4.94 a bushel. Prices fell through technical support
at the 30-day moving average.
USDA said on Thursday morning that weekly export sales of
wheat were just 372,400 tonnes, below the range of trade
estimates for 400,000 to 600,000 tonnes.
CBOT December corn was up 2-1/4 cents at $3.45-1/2 a
bushel while November soybeans gained 5-3/4 cents to
$9.40-3/4 a bushel.
“Beans are recovering some recent losses as rains throw a
wrench into the Midwest harvest while key Brazilian soy areas
have none of that precipitation on tap,” Matt Zeller, director
of market information for INTL FCStone, said in a note to
Gains in soybeans and corn were kept in check by
expectations that USDA will boost its U.S. production outlook
for both crops.
Analysts polled by Reuters forecast the USDA on Friday will
estimate this year’s U.S. corn crop at a record 14.506 billion
bushels. Soybean production was seen at 3.976 billion bushels,
which also would be a record. The USDA report is
expected to be released at 1600 GMT on Friday.

Name Last Pct Change Net Change Pvs Close
CORN DEC4 345.5 0.66 2.25 343.25
SOYBEANS NOV4 940.75 0.61 5.75 935
SOY MEAL OCT4 333.1 1 3.3 329.8
SOYBEAN OIL OCT4 32.92 0.12 0.04 32.88
WHEAT SRW DEC4 493.75 -2.76 -14 507.75
ROUGH RICE NOV4 12.59 -0.28 -0.035 12.625
M.WHEAT EUR JAN5 160.75 -1.98 -3.25 164
LIGHT CRUDE NOV4 86.3 -1.16 -1.01 87.31
DJ INDU AVERAGE 16797.7 -1.16 -196.48 16994.22
GOLD 1223.9 #N/A 2.7 1221.2
BALTIC EXCH DRY 974 -1.72 -17 991
US DOLLAR INDEX 85.447 0.18 0.15 85.297
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb.

Oct 7, 2014

U.S. wheat jumps 3 percent; corn, soybeans also firm

CHICAGO, Oct 7 (Reuters) – U.S. wheat and corn futures rose
for the fifth straight day on Tuesday, with short-covering and
technical buying in focus as investors scrambled to stake out
positions ahead of a key government report, traders said.
Soybeans also firmed, supported by a slowdown in the pace of
harvest that left processors and exporters short of supplies as
they waited for the bumper crop to come in from the fields.
Chicago Board of Trade soft red winter wheat posted
the biggest gains, surging 3 percent on a wave of follow-through
buying from a firm close on Monday.
“Wheat, technically, had a nice close yesterday,” said Ted
Seifried, vice president and chief market strategist at Zaner Ag
Hedge in Chicago. “We ended up closing above the 20-day moving
average for the first time since Aug. 29.”
Chicago Board of Trade wheat for December delivery was
up 15-1/4 cents at $5.06-3/4 a bushel at 11:12 a.m. CDT (1612
GMT). The front-month contract has risen 6 percent during
the five-session rally, its longest since July.
“The wheat market is trading higher as the technical picture
remains friendly along with good demand and strong cash
markets,” INTL FCStone said in a research note to clients. “The
entire complex is trying to carve out a rounding bottom at
current levels as technicals have given a buy signal.”
The strength in wheat lent support to corn, which has risen
6.1 percent during its streak of positive closes.
CBOT December corn was 8 cents higher at $3.40-1/2 a
CBOT November soybeans were up 7-1/2 cents at
$9.49-3/4 a bushel.
“Once harvest is in full swing, there will be beans to crush
and ship, but we have not quite made the progress necessary to
allow that yet,” INTL FCStone said. “Pipelines are trickling at
best. Big crops take longer to harvest, so at least there is
that to keep in mind.”
The U.S. Department of Agriculture said on Monday afternoon
that 20 percent of the soybean crop had been harvested as of
Oct. 5, up from the 10 percent completed last week but 15
percentage points behind the five-year average. Analysts had
expected the crop to be 23 percent complete.
The agency pegged the corn harvest at 17 percent, up from 12
percent the week before, but still lower than market
expectations of 20 percent.
USDA will release its monthly supply and demand estimates,
as well as its crop production forecasts on Friday. Volatile
trade was expected in anticipation of the closely watched report
as investors try to cover short positions they built up when
grain and oilseed prices fell to multi-year lows in recent

Name Last Pct Net Pvs Close
Change Change
CORN DEC4 340.5 2.41 8 332.5
SOYBEANS NOV4 949.75 0.8 7.5 942.25
SOY MEAL OCT4 328.8 2.65 8.5 320.3
SOYBEAN OIL OCT4 33.13 -0.57 -0.19 33.32
WHEAT SRW DEC4 506.5 3.05 15 491.5
ROUGH RICE NOV4 12.75 0.39 0.05 12.705
M.WHEAT EUR JAN5 165.75 1.38 2.25 163.5
LIGHT CRUDE NOV4 89.43 -1.01 -0.91 90.34
DJ INDU AVERAGE 16878.43 -0.67 -113.48 16991.91
GOLD 1208.8 #N/A 2.15 1206.65
BALTIC EXCH DRY 1015 -1.36 -14 1029
US DOLLAR INDEX 85.828 -0.12 -0.1 85.928

Oct 6, 2014

Harvest delays spark buying in U.S. corn, soybeans

CHICAGO, Oct 6 (Reuters) – U.S. corn and soybean futures
surged on Monday, with both commodities on track for their
biggest gains since Sept 12 due to concerns that the slowing
pace of harvest in the U.S. Midwest will delay deliveries of
much-needed supplies, traders said.
“We have got a wetter forecast,” said Bill Gentry, a broker
at Risk Management Commodities in Lafayette, Indiana. “That is
definitely going to cramp the style for some harvest activity.
It could just take these guys forever to get this job done.”
Analysts were expecting a U.S. Agriculture Department report
on Monday afternoon that corn harvest had advanced just 8
percentage points and the soybean harvest 13 percentage points
in the past week due to wet conditions in the fields.

More rain was in the forecast for the eastern Corn Belt
later this week, which will keep farmers in Ohio, Indiana and
Kentucky from running combines. Several inches of rain also were
expected in southern areas due to remnants of Tropical Storm
“Harvest progress is going to be slowed to a standstill late
this week in the far southern Midwest and northern Delta,” said
Josh Senechal, a meteorologist at Freese-Notis based in Iowa.
Chicago Board of Trade soybeans for November delivery
were up 23-1/4 cents at $9.35-1/2 a bushel at 11:25 a.m. CDT
(1625 GMT), while CBOT December corn was 6-3/4 cents
higher at $3.30 a bushel.
Traders also noted some short-covering as traders staked out
positions ahead of the USDA’s monthly supply and demand report
on Friday.
Wheat also advanced, climbing to the highest level since
Sept. 18 as slowing of delivery of supplies from Russia boosted
demand for U.S. export offerings.
CBOT December soft red winter wheat was up 4-3/4 cents
at $4.90-1/2 a bushel.
Russian wheat has made a surprise early exit from key global
export markets despite the country’s near-record crop, after
domestic prices rose in the fallout from the Ukraine crisis.

Sep 18, 2014

Soybeans, wheat sink to lowest since 2010

CHICAGO, Sept 18 (Reuters) – U.S. soybean futures fell 1
percent to their lowest in more than four years on Thursday as
farmers resumed harvesting in parts of the U.S. Midwest as
fields began to dry out, traders said.
Wheat and corn futures fell too, with wheat also hitting its
lowest since July 2010, due to poor demand for U.S. supplies on
the export market and technical selling.
The drop in soybean prices was tied to weakness in the cash
market, with spot basis levels falling in eastern areas of the
Midwest as dealers at processing plants reported truck lines at
their dumps.
“The yields that are coming in are very, very big,” said
Chris Robins, senior trader and analyst at Top Third Ag
Marketing in Chicago. “You have a little bit of a perfect storm
for the bears.”
At 10:49 a.m. CDT (1549 GMT), Chicago Board of Trade
November soybeans were down 9-1/2 cents at $9.73 a bushel.
The front-month contract hit its lowest since July
“Cash market prices are dropping as harvest starts, which is
pulling the futures market down,” said Kaname Gokon, general
manager of research at brokerage Okato Shoji in Tokyo. “We
expect prices to remain depressed as supplies flood the market.”
CBOT December soft red winter wheat was 7-3/4 cents
lower at $4.91-1/2 a bushel while December corn was down
2-1/4 cents at $3.39-1/2 a bushel.
The U.S. Agriculture Department said on Thursday morning
that weekly export sales of wheat for the 2014/15 marketing year
were 314,500 tonnes, down 55 percent from a week ago and below
the range of market forecasts for 450,000 to 650,000 tonnes.
Demand for U.S. exports was pressured by a firm U.S. dollar,
which makes dollar-denominated commodities more expensive on a
relative basis.
The dollar rose to its highest in over four years against a
basket of currencies after the Federal Reserve’s guidance
on interest rates Wednesday highlighted the diverging pathways
between the United States and other rich nations.
Name Last Pct Net Pvs
Change Change Close
CORN DEC4 339.5 -0.66 -2.25 341.75
SOYBEANS NOV4 973.25 -0.94 -9.25 982.5
SOY MEAL OCT4 329.4 -2.08 -7 336.4
SOYBEAN OIL OCT4 32.94 -1.38 -0.46 33.39
WHEAT SRW DEC4 491.75 -1.5 -7.5 499.25
ROUGH RICE NOV4 12.62 0.84 0.105 12.51
M.WHEAT EUR JAN5 163.75 -1.06 -1.75 165.5
LIGHT CRUDE OCT4 93.16 -1.33 -1.26 94.42
DJ INDU AVERAGE 17235.84 0.46 78.99 17156.85
GOLD 1224.91 #N/A 1.92 1222.99
BALTIC EXCH DRY 1089 -3.11 -35 1124
US DOLLAR INDEX 84.364 0.02 0.019 84.345
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb.

(Additional reporting by Naveen Thukral in Singapore and Nigel
Hunt in London; Editing by James Dalgleish)

Sep 17, 2014

U.S. corn, soybean futures fall as harvest nears

CHICAGO, Sept 17 (Reuters) – U.S. corn futures sagged 1
percent on Wednesday, with soybeans falling too, ahead of a
likely record harvest of both crops across the U.S. Midwest in
the coming weeks, traders said.
“The new crop is going to overwhelm the balance tables,”
Matt Zeller, director of market information at INTL FCStone,
said in a note to clients.
Supplies were tight in the country but processors and
elevators were preparing to be overwhelmed with a glut of both
corn and soybeans after fields dry out.
The latest forecasts call for some more rain across key
growing areas in the next few days before dry conditions allow
farmers to aggressively cut their crops. There was little threat
of frost damage through the first week of October.
Chicago Board of Trade corn for December delivery were
down 3-1/4 cents at $3.40-1/2 a bushel at 10:53 a.m. CDT (1553
GMT). CBOT November soybeans were 1/4 cent lower at
$9.80-1/2 a bushel.
Some bargain buying supported prices as they neared recent
four-year lows.
Bargain buying and short-covering pushed prices for CBOT
soft red winter wheat higher, although light demand for U.S.
supplies on the export market kept the gains in check.
The benchmark CBOT December soft red winter wheat contract
, which was trending near a contract low, was up 1-3/4
cents at $4.98 a bushel. K.C. hard red winter wheat for December
delivery shed 1-3/4 cents to $5.81-1/2 and MGEX December
spring wheat fell 2-3/4 cents to $5.62-3/4 a bushel.
Egypt, the world’s largest buyer of wheat, bypassed U.S.
supplies in its latest tender. Traders said that the U.S. wheat
offered was 50 cents a bushel more expensive than the winning
French cargoes.
A bearish tone was expected to hang over prices due to
plentiful global supplies.
“We believe that a bumper global harvest, weaker demand from
key importers and competitively priced Black Sea wheat will
undermine the market in 2014/15,” Abah Ofon of Standard
Chartered Bank said in a note.
Uncertainty about Chinese demand for both corn and soybeans
added further pressure to prices on Wednesday.
Officials from the USDA and China’s quality watchdog failed
in talks last week to settle a dispute over testing for
genetically modified content in corn by-product distiller’s
dried grains (DDGs), two industry sources said.
Additionally, Chinese imports of U.S. soybeans could plunge
by as much as a quarter in the crop year that began this month
after processing margins in the country fell to their lowest
level in two years, industry sources said.
Name Last Pct Net Pvs
Change Change Close
CORN DEC4 340.25 -1.02 -3.5 343.75
SOYBEANS NOV4 981 0.03 0.25 980.75
SOY MEAL OCT4 337.5 -0.24 -0.8 338.3
SOYBEAN OIL OCT4 33.21 1.22 0.4 32.81
WHEAT SRW DEC4 498 0.35 1.75 496.25
ROUGH RICE NOV4 12.525 -1.49 -0.19 12.715
M.WHEAT EUR JAN5 165.5 -0.3 -0.5 166
LIGHT CRUDE OCT4 94.18 -0.74 -0.7 94.88
DJ INDU AVERAGE 17153.06 0.12 21.09 17131.
GOLD 1234.38 #N/A -0.56 1234.9
BALTIC EXCH DRY 1124 -2.26 -26 1150
US DOLLAR INDEX 84.108 0.04 0.034 84.074
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb.

(Additional reporting by Gus Trompiz in Paris and Naveen
Thukral in Singapore; Editing by Marguerita Choy)

Sep 5, 2014

Corn, soybeans, wheat bounce on bargain buying

CHICAGO, Sept 5 (Reuters) – Chicago Board of Trade corn,
soybean and wheat futures rose on Friday, rebounding from losses
earlier in the week that pushed prices to contract lows on a
round of bargain buying and short-covering, traders said.
“We have been beaten up ever since we came back from Labor
Day weekend, said Dewey Strickler, president of grain
consultancy Ag Watch Market Advisors. “We are due to get a
little recovery and that is exactly what we have done. Long
story short, that’s it.”
Wheat futures posted the biggest gains, with concerns about
harvest delays for the spring wheat crop and quality concerns
following rains in the Northern Plains adding support.
“The spring wheat harvest just continues to plod along at an
extremely slow pace,” said Mike Krueger, president of The Money
Farm, a grain marketing advisory service in Fargo, North Dakota.
“I think we are losing quality. When all is said an done, I
think it will be a question of test weight and those sorts of
Chicago Board of Trade soft red winter wheat for December
delivery was up 4-1/4 cents at $5.34-1/2 a bushel at 11:11
a.m. CDT (1611 GMT), on track to snap a streak of four straight
negative sessions. MGEX December spring wheat was 5-1/4
cents higher at $6.13-1/4 a bushel.
CBOT November soybeans were 9-3/4 cents higher at
$10.13 a bushel and CBOT December corn, which also had
fallen for four days in a row earlier this week, was up 5-1/2
cents at $3.52 a bushel.
Corn and soybeans had touched four-year lows in the previous
session as the approach of what are expected to be record U.S.
corn and soybean harvests fueled selling.
Wheat also received support on Friday from news that
Russia’s agriculture ministry had proposed a curb on grain
exports to balance the domestic market in a letter to the
government, although the ministry later denied this.
“The first thing you see today is a technical rebound on the
market,” Frank Rijkers, agrifood economist at ABN AMRO Bank,
said. “On the other hand, you see some nervousness about
(Russian) trading restrictions.”
A letter seen by Reuters and Russia’s Grain Union contained
proposals to halt or limit grain exports in 2014/15 if they
reached 26.9 million tonnes, a ceiling below forecasters’
estimates of Russian exports. The agriculture ministry said it
did not send the letter.
RIC Name Last Pct Net Pvs Close
Change Change
1Cc2 CORN DEC4 352 1.59 5.5 346.5
1Sc2 SOYBEANS NOV4 1013 0.97 9.75 1003.25
1SMc2 SOY MEAL OCT4 357.1 1.77 6.2 350.9
1BOc2 SOYBEAN OIL OCT4 31.81 -0.59 -0.19 32
1Wc2 WHEAT SRW DEC4 535 0.9 4.75 530.25
1RRc2 ROUGH RICE NOV4 12.525 0.04 0.005 12.52
BL2c2 M.WHEAT EUR JAN5 174.5 0 0 174.5
CLc1 LIGHT CRUDE OCT4 92.95 -1.59 -1.5 94.45
.DJI DJ INDU AVERAGE 17073.34 0.02 3.76 17069.58
XAU= GOLD 1266.19 #N/A 5.35 1260.84
.BADI BALTIC EXCH DRY 1155 0.7 8 1147
.DXY US DOLLAR INDEX 83.736 -0.1 -0.084 83.82
In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb

(Additional reporting by Colin Packham in Sydney and Gus
Trompiz; in Paris; editing by Gunna Dickson)

Aug 29, 2014

Harvest expectations pressure corn, soybeans; wheat also weak

CHICAGO, Aug 29 (Reuters) – U.S. corn and soybeans fell on
Friday, flirting with contract lows on forecasts for rain that
boosted confidence of bumper harvests for both crops this fall.
The weather outlook, which called for rains across broad
stretches of U.S. growing areas, also weighed on wheat futures
as farmers prepared for seeding of the winter crops.
“All these rains that we are supposed to be getting,” said
Mark Gold, managing partner with Top Third Ag Marketing. “Not
only is it going to help the crops that are out there but it is
going to certainly replenish the soils for the winter wheat.”
Traders also noted some profit-taking as investors closed
out positions ahead of a long weekend. U.S. markets will be
closed on Monday for Labor Day.
Chicago Board of Trade soybeans for November delivery,
the most actively traded contract that tracks the crop that will
be harvested in the coming weeks, were 5-3/4 cents lower at
$10.23 a bushel at 11:34 a.m. CDT (1634 GMT).
Although new-crop contracts were lower, the front-month
September contract was up 10 cents at $10.83-3/4 a bushel
due to tight cash market supplies.
CBOT December corn was off 6-1/2 cents at $3.62-3/4 a
bushel, just above the contract low of $3.58 hit earlier this
CBOT December wheat was down 8-3/4 cents at $5.63 a
bushel, facing additional pressure from what traders said
appeared to be a lowering of tensions between Ukraine and
Russian President Vladimir Putin proposed that pro-Moscow
rebels allow surrounded Ukrainian troops to retreat from
rebellious eastern cities.
“We have seen some reasonable strength this week but with a
little decrease in tensions in Russia and Ukraine I think a lot
of guys are coming back and saying, ‘You know, I just do not
want to press the long side so I am liquidating my positions,’”
said Bill Gentry, a broker at Risk Management Commodities. “The
Russia-Ukraine situation is almost old hat.”
The prospect of plentiful global supplies acted as a drag on
the market. The International Grains Council raised its forecast
of 2014/15 world wheat production to 713 million tonnes, from
702 million previously, and boosted its outlook for corn by 4
million tonnes to 973 million.
CBOT corn futures were down 2.4 percent for the week,
and were flat for the month. Wheat has shed 0.8 percent
this week but was up 3.3 percent for August, on track for its
first positive month since April.
CBOT soybeans were 7.1 percent lower for the week and
11.5 percent lower for August, their fourth straight losing
Name Last Pct Net Pvs Close
Change Change
CORN SEP4 357.25 -1.24 -4.5 361.75
SOYBEANS SEP4 1083.75 0.93 10 1073.75
SOY MEAL SEP4 430.3 -0.67 -2.9 433.2
SOYBEAN OIL SEP4 32.06 -1.81 -0.59 32.64
WHEAT SRW SEP4 547.5 -1.62 -9 556.5
ROUGH RICE SEP4 12.61 -0.59 -0.075 12.685
M.WHEAT EUR NOV4 174 -0.57 -1 175
LIGHT CRUDE OCT4 95.4 0.9 0.85 94.55
DJ INDU AVERAGE 17078.28 -0.01 -1.29 17079.57
GOLD 1286.9 #N/A -2.84 1289.74
BALTIC EXCH DRY 1147 2.5 28 1119
US DOLLAR INDEX 82.683 0.25 0.206 82.477

In U.S. cents, benchmark contracts, except EU wheat (euros) and
soymeal (dollars). CBOT wheat, corn and soybeans per bushel,
rice per hundredweight, soymeal per ton and soyoil per lb.

Aug 7, 2014

U.S. wheat drops on profit-taking, corn also weak

CHICAGO, Aug 7 (Reuters) – U.S. wheat futures fell on
Thursday, dropping back from a 5-1/2 week high on a round of
profit-taking following a six-session rally that had pushed
prices up 9.2 percent, traders said.
“We came pretty far, pretty fast off our lows,” said Chris
Robinson, senior trader at Top Third Ag Marketing. “It is not
surprising that we get a little bit of a breather.”
Corn futures also fell, weighed down by light demand on the
export market. Soybeans were mixed, with the front-month
contract supported by tight supplies, while old-crop contracts
sagged on expectations of a huge harvest.
Traders said the wheat market was in focus due to concerns
about how the conflict between Russia and Ukraine would affect
exports from the Black Sea region.
In a sweeping response to Western sanctions imposed over
Russia’s support for rebels in Ukraine, Russian Prime Minister
Dmitry Medvedev said on Thursday his country will ban fruit,
vegetable, meat, fish, milk and dairy imports from the United
States, the European Union, Australia, Canada and Norway. Moscow
is the second-biggest importer of U.S. poultry.
Chicago Board of Trade soft red winter wheat for September
delivery was down 4 cents at $5.64 a bushel at 12:05 p.m. CDT
(1705 GMT)
Some short-covering, spurred by speculation that the Ukraine
crisis could deepen in coming days, kept the declines in check
and pulled wheat from its session low. Traders also cited some
technical support for CBOT September wheat at its 40-day moving
CBOT September corn was 5-1/2 cents lower at $3.57-3/4 a
bushel, with expectations for a bumper harvest keeping bargain
buyers on the sidelines even with prices near four-year lows.
The U.S. Agriculture Department said on Thursday morning
that new-crop export sales of corn were 758,700 tonnes in the
latest week, below trade estimates ranging from 800,000 to 1
million tonnes.
“The world has moved into a period of surplus in the corn
market, so the function of the market has become to weaken
farmer margins and discourage production,” Macquarie analyst
Christopher Gadd said.
An export trader said that most world buyers were more
interested in Black Sea corn, which was priced about 15 cents a
bushel lower than U.S. supplies.
CBOT soybeans for August delivery were 5-1/2 cents
higher at $12.42-1/2 a bushel, while the new-crop November
contract was 5-3/4 cents lower at $10.74-1/4 a bushel.

Prices at 12:06 p.m. CDT (1706 GMT)

CBOT corn 357.75 -5.50 -1.5% -15.2%
CBOT soy 1242.50 5.50 0.4% -5.3%
CBOT meal 389.70 1.70 0.4% -11.0%
CBOT soyoil 35.53 -0.26 -0.7% -8.5%
CBOT wheat 563.50 -4.50 -0.8% -6.9%
CBOT rice 1271.00 8.50 0.7% -18.1%
EU wheat 176.25 -2.00 -1.1% -15.7%

    • About Mark

      "I cover grain futures out of Chicago, with a focus on the wheat market. Examining the effects of world crop production on prices and the vagaries of export demand for U.S. supplies takes up most of my time. Previously, I was a reporter on the equities desk in New York and I got my start as a news assistant in the Washington Bureau."
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