US grain and soyabean prices were lower on Monday, declining in sympathy with crude oil and stocks ahead of a government crop report due at midday that was expected to show robust global grain supplies. Analysts polled by Reuters predicted the US Department of Agriculture at 11 am CST (1700 GMT) will report record-large domestic corn stocks as of December 1 and ample global wheat stockpiles. An expected cut in US soyabean supplies was likely to be offset by outlooks for big South American soya production.
Oil declined as much as 5 percent to below $48 a barrel after Goldman Sachs slashed its short-term forecast. "It's a little bit of a heavier feel this morning in all of these commodities," said Jefferies Bache analyst Shawn McCambridge. "Crude down sharply, the dollar up and equities showing weakness - it's feeding on itself."
Chicago Board of Trade March corn futures were down 1-3/4 cents to $3.98-1/2 per bushel as of 10:09 am CST (1609 GMT), off its earlier low of $3.94-1/2 as investors evened positions ahead of the crop report. CBOT March soyabeans were 2 cents lower at $10.50-1/4 per bushel and CBOT March wheat off 1/2 cent at $5.63-1/4. McCambridge said the USDA data could set the tone for the grains trade for another month - when investors begin debating US spring plantings that begin as early as February.
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