US grain and soya futures plummeted on Thursday, with wheat easing as much as 5 percent in a technical selloff amid outlooks for slightly cooler temperatures and chances for rain next week in Midwestern growing regions, traders and analysts said. Wheat, corn and soyabeans extended steep losses from Wednesday that followed a US Department of Agriculture monthly supply and demand report showing relatively robust global stockpiles of the crops.
Global benchmark Chicago Board of Trade September wheat fell 24 cents per bushel to a two-week low of $5.13 per bushel at 11:41 am CDT (1641 GMT). The contract declined from a 13-month high reached July 5 and was on pace for its biggest two-day percent drop since April 2016. MGEX September spring wheat futures were off 28 cents to $7.54-3/4 per bushel.
The USDA's July report increased US winter wheat production while reducing projected output of spring wheat - the variety that has been hit by drought and heat in the northern Plains - by less than expected.
The USDA also raised its forecasts of end-2017/18 US corn stocks to 2.325 billion bushels, up from 2.110 billion in June and above an average of analyst estimates of 2.181 billion. CBOT September corn futures were down 12-1/2 cents to a nearly two-week low of $3.73 per bushel and CBOT August soyabeans were down 35 cents to $9.85-3/4 per bushel, lowest since July 7.
Much of the US corn crop goes through its yield-determining pollination phase in July. Forecasts for slightly less heat next week were seen as beneficial for the developing corn and soyabean crops.