US grains tumbled on Wednesday as investors sought safe haven in the dollar amid new worries about Europe's debt crisis, with soyabeans diving below $16 a bushel to their lowest price in nearly three months. Corn futures fell 2.5 percent to the lowest level in nearly three months and like soyabeans were also weighed by the harvest in the world's top grains exporter moving at a record clip, helping to boost supplies in the pipeline.
Investors had focused for more than three months on tight supplies brought on by the worst US drought in half a century, but now they are turning their attention to macro-economic factors, including a stronger dollar, for price direction. Analysts said investors were liquidating long positions in grains after prices hit record highs this summer. They said prices have been pressured by anecdotal accounts of better-than-expected soyabean yields and dimming demand for corn.
Chicago Board of Trade November soyabeans fell 44 cents, or 2.7 percent, to $15.67-1/2 a bushel at 11:35 am CDT (1635 GMT). CBOT December corn was down 18-1/4 cents, or 2.5 percent, at $7.25-1/2 a bushel while December wheat fell 14-1/2 cents, or 1.6 percent, to $8.72. Traders were gearing up for Friday's US quarterly grain stocks and wheat crop reports which may provide new direction for markets.
"Everyone is pretty hesitant to make any moves ahead of the USDA grains stocks report on Friday," Rabobank analyst Erin FitzPatrick said. "The very fast progress being made with the US corn harvest does raise questions about how this will impact the stocks report." Analysts polled by Reuters expect US corn and soyabean stocks as of September 1 to be the lowest in eight years at the end of the 2011/12 season (September-August). Egypt's state grains buyer General Authority for Supply Commodities (GASC) bought 300,000 tonnes of Romanian and French wheat at its snap tender. There were no purchases of wheat from Russia, which has been a major supplier to GASC the past month.
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