US soyabean futures fell on Wednesday and were set to end 2014 with their biggest loss in a decade as bumper production in the United States and South America replenished global supply of the protein-rich oilseed. Corn and wheat also fell during the session and were also poised to post an annual decline against a background of ample worldwide supply. But a fourth-quarter rebound prompted by concerns over Russian wheat exports and strong corn demand limited full-year losses.
Soyabean and corn prices could come under additional pressure early next year as South American farmers harvest expected bumper crops after largely favourable growing weather. This should benefit grain buyers such as livestock and poultry producers, ethanol makers and importers. Meanwhile, ample global supplies may anchor wheat prices, although supplies of the highest quality grain remain tight.
Trading on Wednesday was light as the year-end period kept some operators away from their desks and encouraged others to make small adjustments to their books. "Today is more of a money game than anything else, people shuffling money around," said Jim Gerlach, president of A/C Trading in Fowler, Indiana. Chicago grain markets will be closed on Thursday for the New Year's Day holiday.
Chicago Board of Trade January soyabeans fell 15-1/2 cents, or 1.5 percent, to $10.22-1/4 a bushel by 11:45 am CST (1745 GMT), with technical selling deepening earlier losses. Selling accelerated as the contract fell below a recent swing low around $10.25 as well as its 10-, 20- and 50-day moving averages. CBOT March corn declined for a third straight day, shedding 5 cents, or 1.2 percent, to a 1-1/2 week low of $4.01-1/2 a bushel. CBOT March wheat dropped 10-1/4 cents, or 1.7 percent, to a near-two week low of $5.91-3/4 a bushel. Over the year, spot soyabean prices have fallen more than 22 percent, compared with a 4.7 percent decline for corn and a 2.2 percent drop for wheat.