US wheat futures on Wednesday fell 1.1 percent to their lowest in more than a week on poor export demand for US supplies and pressure from a firm US dollar, traders said. Corn and soyabeans rose, snapping two-session losing streaks on a round of short-covering.
"When we went down there and you could not break some of those lows that we had set early on," said Jason Britt, president of Central States Commodities. "You had another bout of short-covering. It was very oversold for how quickly it broke." Chicago Board of Trade wheat notched its fourth day of declines out of the last five. Egypt, the world's top buyer of wheat, on Wednesday again bypassed US offerings in its latest tender in favour of cheaper supplies from France and Ukraine.
"We have kind of priced ourselves out of the global market," said Karl Setzer, analyst at MaxYield Co-operative. The benchmark CBOT December soft red winter wheat contract settled down 5-3/4 cents at $5.24-3/4 a bushel. Prices bottomed out at $5.18-3/4 a bushel, the lowest since October 27. "Wheat is being pulled down in the general market weakness and is also suffering from strong competition to US supplies in export markets from the Black Sea region and European Union, which the dollar strength will make worse," said Frank Rijkers, agrifood economist at ABN Amro Bank.
The dollar rose on Wednesday, extending multi-year highs after Republicans in mid-term elections won control over both chambers of the US Congress for the first time since 2006, lifting investor expectations for more pro-business policies. CBOT corn for December delivery was 5-3/4 cents higher at $3.70-1/4 a bushel. CBOT January soyabeans ended up 9-1/2 cents at $10.19-1/4 a bushel. Some bargain buyers stepped in to push the market higher after soyabean prices briefly dipped below $10 a bushel.
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