US wheat futures fell to multi-month lows on Friday, despite broad strength in commodity and equity markets as grain traders eyed falling prices in the global cash wheat market and bearish technical signals. Soyabeans climbed on optimism about US trade negotiations with China, the world's top soya importer, while corn futures were little changed.
As of 12:53 p.m. CDT (1853 GMT), Chicago Board of Trade March wheat was down 3-3/4 cents at $5.03-1/2 per bushel, after falling to $4.99-1/4, the contract's lowest level in more than a year and the lowest for a most-active contract since Oct. 31. Technical selling accelerated as March wheat fell below its Jan. 2 low of $5.01-1/4 and as K.C. hard red winter wheat futures hit contract lows.
CBOT March soyabeans were up 4-1/4 cents at $9.07-3/4 a bushel and March corn was down 1/4 cent at $3.74-1/2 a bushel. Wheat fell on reminders of declining prices on the global export market. Algeria's state grains agency this week bought 600,000 tonnes of milling wheat at a tender at around $247 to$247.50 per tonne, cost and freight included, European traders said.
That was about $15 per tonne cheaper than an Algerian purchase in early January. Euronext wheat futures led the way down, with the benchmark May contract hitting its lowest level since July on technical selling ahead of March options expiration. CBOT soyabeans turned up after the March contract briefly dipped to a 3-1/2-week low. The soya market drew support as both the United States and China reported progress in five days of trade negotiations in Beijing this week.
Soyabeans also drew support from a larger-than-expected January crush figure. The National Oilseed Processors Association said its member crushed 171.6 million bushels of soyabeans last month, down slightly from December's 171.8 million but above the average analyst estimate of 169.6 million.
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