US grain futures fell on Thursday, with corn tumbling to a five-week low and wheat a four-month low, as demand slumped for American agricultural exports while Europe's spreading debt crisis kept investors cautious. Traders said the fallout from MF Global's bankruptcy continues to weigh on markets as it has kept traders wary of buying or holding a position in grains and other commodities.
Funds sold an estimated 25,000 CBOT corn contracts, up from sales of only 5,000 on Wednesday. Corn tumbled 4.4 percent on the Chicago Board of Trade and wheat fell 3.9 percent, careening to their sixth losses in seven sessions, while soyabeans weakened for the second straight day. With ample grain supplies as the US harvest wraps up, export demand has been sluggish. The US Department of Agriculture reported lower net weekly export sales of corn and wheat than expected.
Corn's relatively high price has prompted some animal feeders to substitute feed wheat, while Japan bought about 800,000 tonnes of corn from the Ukraine instead of its usually preferred US supplies. The USDA reported corn export sales of 208,900 tonnes, down from last week and well below the range of trade estimates from 350,000 to 600,000 tonnes.
CBOT December corn lost 28-1/4 cents to $6.14-1/2 a bushel, with selling accelerating after corn triggered sell stops, traders said. Liquidation of the December contract ahead of first notice day for delivery also weighed down the market, Cekander said. CBOT December wheat shed 24-1/4 cents to $5.92-1/2 a bushel. Hard red winter wheat traded in Kansas City didn't fall as fast, but still reached its lowest level since July 30, 2010.
Net weekly wheat exports of 317,100 tonnes fell short of expectations for between 350,000 and 450,000 tonnes. Soyabeans topped expectations for export sales, which kept its losses more modest.
China stepped up soyabean purchases this week to fill state reserves, buying more than 500,000 tonnes to take advantage of lower global prices and traders in Beijing said more deals were likely. January soyabeans tumbled 19-1/2 cents or 1.6 percent to $11.68-1/4 a bushel, following corn.