US grain and soyabean futures slipped on Wednesday on concerns about easing demand from China and improving weather conditions in key global crop regions. Wheat retreated after an early-week surge, with forecasts calling for needed rains in the US Midwest and southern Plains, where farmers are planting crops that will be harvested in the spring. Soyabeans weakened on improving rains in Brazil, where producers are busy planting their next crop.
For corn, weak export demand and a large US harvest pushed down prices, adding to a 1.3 percent decline on Tuesday, traders said. Chinese customers have temporarily stopped buying distiller's dried grains from the United States, a by-product of corn ethanol, amid worries that Beijing may launch another anti-dumping probe into imports of the feed ingredient, industry sources said. China is the world's top buyer of DDGs and imports almost all of its needs from the United States, the largest exporter.
Chicago Board of Trade December wheat fell 0.9 percent to $5.04-1/2 a bushel by 1635 GMT. The front-month contract pulled back after touching a two-week high of $5.18 on Tuesday. December corn dropped 0.7 percent to $3.77-1/4 a bushel, and November Soyabeans fell 0.8 percent to $8.84-1/4 a bushel. Rains in Brazil will allow farmers to continue planting a big soyabean crop, said Karl Setzer, risk management team leader for MaxYield Co-operative in Iowa. The improved conditions indicate the United States will continue to face stiff competition for export business from South America, traders said. On Thursday, traders will wait for an update on export demand from the US Department of Agriculture's weekly export sales data.
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