US wheat futures dropped more than 3 percent on Friday, while corn and soybeans slid more than 2 percent each as debt problems in Dubai rattled financial markets around the world. Wheat futures, which have lost nearly 5 percent this week, came under additional pressure after the International Grains Council (IGC) raised its estimate for world wheat production, reinforcing concerns over global oversupply of the grain.
Corn has dropped 2.3 percent this week, while soybeans are down just 1.9 percent, as the market has been supported by strong global demand led by China, the world's top soy importer. Dubai asked creditors of two of its flagship firms for a standstill on debt running into billions of dollars as part of restructuring Dubai World, the conglomerate that spearheaded the emirate's growth.
Rain across the south-eastern region of Australia, the world's fourth largest exporter, is preventing growers from harvesting their best wheat crop in nearly a decade and fuelling worries about quality as production recovers from years of drought. Chicago Board of Trade December wheat fell 3.2 percent to $5.32 a bushel by 0659 GMT. Corn for December delivery lost 2.4 percent to $3.82 a bushel, while January soybeans fell 2.3 percent to $10.30 a bushel.
Chinese buying, which has supported Chicago futures in recent weeks, is likely to slow because of an increase in prices this month, an official survey in China showed on Friday. Chinese soy buyers have completed purchases of US soybeans for shipment through March and now plan to hold off for a period following price rises, the China National Grain and Oils Information said. The front-month soybean contract is up more than 6 percent this month, despite Friday's losses.
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