US wheat futures fell for a third session on Tuesday, erasing early strength and setting a one-month low after Egypt bought Russian and Ukrainian wheat at an international tender and sent a signal that US grain was overpriced, traders said. Soyabeans and corn pared early gains as wheat slipped and were nearly unchanged in choppy trading.
At the Chicago Board of Trade as of 11:25 a.m. CDT (1625 GMT), September wheat was down 11 cents, or 1.3 percent, at $8.45-3/4 per bushel. Benchmark December corn was up 1 cent at $7.93-1/4 per bushel and November soyabeans were down 2-1/2 cents at $15.98-1/4 a bushel.
Front-month CBOT wheat broke chart support at $8.50 and dipped to $8.41, the lowest spot price since July 13. Wheat futures fell after Egypt, the world's largest wheat buyer, bought 120,000 tonnes of wheat from Russia and Ukraine on Tuesday, three days after buying 120,000 tonnes of Russian wheat at its previous tender. The purchases eased concerns that drought might spur Russia to restrict grain exports. Russia's wheat harvest may fall by 20 percent in the 2012/13 season to around 45.5 million tonnes, largely because of a drought that has parched fields in leading growing regions.
But the head of Russia's Grain Union last week said Russia will have enough grain for export and domestic consumption at least until the end of 2012. "The government does indeed have exportable supplies, and Russia is a competitor. I don't think the trade was prepared for that," said Mike Zuzolo of Global Commodity Analytics in Lafayette, Indiana.
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