US soyabean prices fell 2.6 percent to a 14-month low, wheat skidded to a five-month low and corn dropped more than 1 percent early Friday in reaction to surprisingly high government grain supply estimates. The US Department of Agriculture in its December supply/demand report forecast 2011/12 US wheat ending stocks at 878 million bushels, above trade estimates for 830 million bushels and up from the November forecast of 828 million bushels.
The spot CBOT wheat contract hit its lowest level since July 1 in early moves, sliding to $5.68-1/4. And at 10:30 am CST (1630 GMT), benchmark CBOT March wheat futures were down 8-3/4 cents, or 1.5 percent, at $5.88-1/4 a bushel. CBOT March corn was off 12 cents, or 2 percent, at $5.88-1/4 a bushel. CBOT January soyabeans were down 30 cents, or 2.6 percent, at $11.02-1/2 a bushel after bottoming out at $11.00-1/4, the lowest price since October 8, 2010, earlier in the session.