US MIDDAY: wheat falls

US wheat futures fell for the sixth day in a row on Wednesday, extending a losing streak that has seen the benchmark contract shed 6.4 percent of its value due to ample global stocks and waning demand for US supplies. Soyabeans were 1.1 percent lower, with traders noting long liquidation as funds locked in profits from a rally spurred by tight stocks in the United States.
Corn also was weak, pressured by the drop in the wheat market as well as active planting of the US crop. Wheat notched the biggest losses, falling 2.5 percent and hitting its lowest in nearly three weeks. "Wheat is lower across the board as large global supplies are weighing on prices," said Sterling Smith, futures specialist with Citigroup. "The large gains seen in recent months in the US futures market has priced US wheat out of the market and we are going to need to see a correction to equalise those issues, as global cash prices are not going to climb to meet the board."
Chicago Board of Trade July soft red winter wheat futures were down 18-1/4 cents at $6.91 a bushel at 10:38 am CDT (1538 GMT). The contract fell through key support at its 30-day, 40-day and 50-day moving averages. CBOT wheat has fallen for six days after hitting a 13-month high of $7.35 on May 6.
CBOT July corn was 6-1/4 cents lower at $4.96-1/2 a bushel, falling below its 50-day moving average and hitting its lowest since April 22. CBOT July soyabeans dropped 15-1/2 cents to $14.68-1/4 a bushel. Losses in old-crop soyabean contracts outstripped new-crop declines as traders unwound bull spreads. The closely watched July-November spread narrowed by nearly 9 cents after widening for three of the previous four sessions.
Expectations of a slowdown in Chinese import demand contributed to the bearish sentiment hanging over soyabeans as the country sold more of its domestic stocks.
China's government sold 92 percent or 276,168 tonnes of the soyabeans offered at a regular domestic auction on Tuesday. Soyabean declines were kept in check as dealers positioned themselves ahead of ahead of the monthly US report on crush data and oilseed stocks from the National Oilseed Processors Association on Thursday. The report was expected to show that pace of crushing during April crush was the highest for the month in five years.