US and European wheat futures slipped to new contract lows on Thursday as a tender by top importer Egypt kept attention firmly on stiff competition in well supplied export markets. Corn fell for a third session as the run-up to what is expected to be a big US harvest kept a bearish mood in the market. Soybeans inched higher as investor worries about China, the world's biggest soybean buyer, abated.
Chicago Board of Trade December wheat fell to as much as $4.75-3/4 a bushel. By 1045 GMT, the contract was trading down 0.2 percent at $4.78 a bushel.
Front-month Kansas City hard red winter wheat was unchanged on the day at $4.48 a bushel to hold close to an eight-year low of $4.45-1/2 set on Wednesday. In Europe, December milling wheat on the Paris-based Euronext market was down 0.7 percent at 167.75 at euros a tonne after hitting a new contract low at 166.75 euros. "US and French wheat have not been very competitive for export, that is the main factor pressuring the market," one European trader said. "And then we've got the corn harvest that is going to come in soon too."
Egypt's government buyer is holding an import tender on Thursday and traders are waiting to see if Black Sea origins continue their clean sweep of sales this season. US wheat was not offered in the tenders issued by Egypt last week while French wheat was more expensive than Russian and Ukrainian origins. The European market will be looking to see if French wheat is in closer contention in Thursday's Egyptian tender, notably in view of aggressive prices reported in a purchase by Algeria this week.
Grain markets will also get a demand indicator from weekly US and EU export data later on Thursday. Autumn corn and soybean harvests in the northern hemisphere will further swell global grain supplies after large volume from summer wheat harvests. "Grain markets are moving lower with wheat prices down on ample world supply, while corn and soy face the prospect of the imminent start to the US harvest," said Paul Deane, senior agricultural economist at ANZ Bank.
Although many in the market view the US Department of Agriculture's current corn and soybean crop estimates as too high, some private forecasts are calling for bumper harvests of both crops. November soybeans added 0.1 percent to $8.75-1/4 a bushel, and December corn fell 0.2 percent to $3.66-3/4 a bushel. Commodity funds sold an estimated net 6,000 CBOT wheat contracts on Wednesday, trade sources said. The funds also sold a net 6,000 corn contracts, sold 5,000 in soyoil, bought 2,000 in soymeal and were net even in soybeans.