US MIDDAY: wheat and corn sag; soyabeans choppy

08 Dec, 2016

US wheat and corn futures fell about 1 percent on Wednesday, pressured by plentiful world feedgrain supplies and profit-taking following light rallies a day earlier, traders said. Soyabean futures were choppy despite worries about South American crop weather and fresh export demand for US soya. As of 12:35 p.m. CST (1835 GMT), Chicago Board of Trade wheat for March delivery was down 6 cents at $4.00-3/4 per bushel. March corn was down 3-1/4 cents at $3.57-1/4 a bushel and January soyabeans were down 3/4 cent at $10.47 a bushel.
Wheat posted the biggest percentage decline, with the March contract retreating after reaching its highest level in nearly a week on Tuesday. "There is nothing bullish in the wheat market to get traders excited," said Terry Reilly, analyst with Futures International, leaving the market to struggle with a bearish fundamental outlook characterised by huge global supplies.
Canada's Statscan on Tuesday put the country's all-wheat crop at 31.7 million tonnes, up 15 percent from last year and exceeding the average trade expectation of 30.7 million tonnes. Australia, another major supplier, earlier in the day raised its official forecast for 2016-17 wheat production to a record 32.64 million tonnes. Corn fell as US producers sold scattered volumes of grain, taking advantage after the March contract on Tuesday touched $3.64 a bushel, its highest level in about four weeks. Crop prospects in South America remained a focus. Soyabeans were lower in mixed, choppy trade, despite worries about dry weather in Argentina and confirmation of fresh US export sales. The US Department of Agriculture said private exporters in the last day sold 466,000 tonnes of US soyabeans to China and unknown destinations.

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