US wheat futures sank on Wednesday, weighed down by signs of abundant supplies and dim prospects for US exports, traders said. The front-month K.C. hard red winter wheat contract shed 2.5 percent and hit its lowest in more than eight years, while the most actively traded Chicago Board of Trade December soft red winter wheat contract touched contract lows.
The drop in wheat weighed on corn prices, which hit their lowest since June 22, while soyabeans retreated on technical selling after firming early in the session. A firm dollar, which makes US commodities relatively more expensive to overseas buyers, cast a bearish tone across the sector. Dollar strength tends to hit wheat the hardest, as export deals for the grain are priced in local currencies.
The front-month K.C. hard red winter wheat contract ended down 10-1/2 cents at $4.48 a bushel. Prices bottomed out at $4.45-1/2, their lowest since April 4, 2007. CBOT reported on Monday evening that were 184 new deliveries against the expiring K.C. September hard red winter wheat contract, reflecting the abundant supplies on the cash market. CBOT December soft red winter wheat settled down 7-1/4 cents at $4.79 a bushel. Prices matched a contract low of $4.76-1/2 earlier in the trading session. But traders said the declines were unlikely to drum up much interest from overseas buyers for US supplies. Egypt's GASC, the top buyer of wheat, tendered to buy an unspecified amount of wheat after the closing bell. US wheat was not even offered in the tenders issued by Egypt last week. Some private forecasts for bumper harvests of both crops in the United States added pressure to corn and soyabeans. CBOT December corn was 1-1/2 cents lower at $3.67-1/2 a bushel while CBOT November soyabeans settled unchanged at $8.74. Deferred contracts finished in negative territory. A turnaround in crude oil prices pulled soyabeans from session lows.