US wheat futures fell more than 3 percent on Thursday and touched the lowest level in nearly two months, tracking commodities lower as investors fretted about the demand outlook as China took aim at inflation. China, a major importer of commodities from oil to metals to grains, raised the capital reserve requirement for its banks in a bid to tame inflation, a move that could slow growth.
Corn and soybeans futures pared losses and corn turned positive as the dollar weakened, lifting export prospects. Corn was also supported by talk of China seeking to buy that grain from the United States. Chicago Board of Trade corn futures for July delivery was up 1-1/4 cent at $6.78-1/2 after falling as low as $6.59 overnight and the 30-cent limit on Wednesday.
CBOT July wheat fell 21-3/4 cents to $7.37-1/4 per bushel, while July soybeans were down 3-1/4 cent at $13.28-1/2. Corn futures turned positive after rumours circulated on the trading floor in Chicago that China was interested in buying old- or new-crop US corn or supplies from an optional origin. A Chinese delegation in Argentina was seeking to buy 300,000 to 400,000 tonnes of soyoil and to discuss a possible purchase of corn, traders said on Thursday.
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