US wheat futures fell for a fifth straight session on Wednesday to set a new 5-1/2-year low under pressure from large global supplies and sluggish demand. Corn and soyabeans each fell for a second day, pressured by the prospect of bumper crops in South America coming to market. However, traders were cautious ahead of closely watched US government planting forecasts due on Thursday.
Farmers are expected to plant more corn and soyabeans this year than last year as they scramble to stay solvent in the face of declining crop prices. The US Department of Agriculture will release revised acreage forecasts at its annual two-day Outlook Forum. Chicago Board of Trade front-month wheat had eased 0.8 percent to $4.44-1/2 a bushel by 10 am CST (1600 GMT), after touching its lowest since June 2010 at $4.44. The contract had closed down 2.3 percent on Tuesday.
The more active May contract was down 0.8 percent at $4.52 after also recording its lowest since June 2010. "Ferocious competition abroad is dragging global wheat prices lower, as weaker currencies have provided Black Sea and Argentinian exporters with a tremendous competitive advantage over the US," Rabobank analysts said in a note. Front-month soyabeans fell 0.4 percent to $8.66 a bushel, and spot corn shed 0.5 percent to $3.60-1/4 a bushel.
Prior to the setback, corn and soyabean futures had risen to multi-week highs as crude oil and equity markets rallied. The gains left the farm markets ripe for losses linked to profit taking, traders said. The USDA said Colombia bought 110,000 tonnes of US corn within the last 24 hours.
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