US soyabean futures fell to a fresh seven-week low on expectations the US government will increase its forecasts for domestic grain inventories later on Tuesday, adding to a global glut of grain supplies. Wheat futures fell to a one-month low and corn touched a fresh three-week low.
Estimates that the US Department of Agriculture will raise its outlook for US crop inventories added pressure to markets that have struggled for months amid concerns about large global supplies and weak export demand for US farm products. Crop prospects are also improving in South America, which competes with the United States for export business, after weekend rains eased concerns about dryness in Argentina, the world's top exporter of soyaoil and soyameal and the No 3 soyabean supplier.
Traders will probably resume monitoring South American yields and demand once the USDA issues monthly crop data at 11 am CST (1700 GMT), said Karl Setzer, risk management team leader for MaxYield Co-operative in Iowa. "Demand is a concern at this time, as buyers remain uninterested in US corn offerings and are quickly losing interest in soyabeans," he said. Front-month corn futures fell 0.1 percent at the Chicago Board of Trade to $3.61-3/4 a bushel by 10:35 am CST. The market traded as low as $3.59-3/4 during the session, the lowest price for a front-month contract since January 15.
Nearby wheat futures was down 0.2 percent to $4.57-3/4 a bushel after trading down to $4.56-1/2, the lowest price for a front-month contract since January 7. Front-month soyabeans were down 0.1 percent at $8.61-1/4 a bushel. Earlier in the session, the contract traded to $8.61, the lowest price for a nearby contract since December 17.
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