Chicago Board of Trade wheat futures sank to contract lows on Wednesday as ample global supplies provided overseas buyers with cheaper alternatives to US offerings in export deals, traders said. Corn futures also were lower, pressured by the drop in wheat as well as good weather for crop development across the US Midwest.
Soyabeans closed firm, with signs of good export demand keying a turnaround after prices dipped into negative territory. Both corn and soyabeans hit their lowest levels since late June during the session. CBOT December corn futures ended down 2 cents at $3.66-1/2 a bushel. CBOT November soyabeans were 1 cent higher at $9.25-1/4 a bushel. CBOT September soft red winter wheat settled 10-1/4 cents lower at $4.19-1/4 a bushel.
Egypt, the world's largest wheat buyer, on Wednesday said it signed deals to buy 295,000 tonnes of Russian wheat and 60,000 tonnes of Ukraine wheat. No US wheat was offered in the tender. While large volumes purchased in the tenders could be supportive of prices, a wide gap between Black Sea origins such as Russian wheat and US and West European origins may maintain price pressure.
But strong export demand was limiting the declines in soyabeans. A delegation of importers from China signed agreements to buy 3.8 million tonnes of US soyabeans valued at about $1.56 billion at a ceremony in Omaha, Nebraska, on Tuesday, the US Soyabean Export Council said on Wednesday.
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