US wheat futures fell to a one-week low on Monday on technical selling and an improving weather outlook, including beneficial moisture in parts of the Midwest winter wheat belt, analysts said. Soyabean futures set a two-week low on forecasts for much-needed moisture in parts of Argentina, and corn sagged as well. As of 1:07 pm CST (1907 GMT), Chicago Board of Trade March wheat was down 7 cents at $4.39-3/4 per bushel. March soyabeans were down 7-1/2 cents at $9.71-1/4 a bushel and March corn was down 2-1/4 cent at $3.59-1/4 a bushel.
All three commodities declined after the US Commodity Futures Trading Commission's weekly commitments report on Friday showed that funds had cut their net short positions in grains and soya aggressively, leaving the market open to a round of fresh short-selling.
The supplement to the CFTC's weekly commitments report showed large speculators in the week to January 30 slashed their net short position in CBOT wheat by about 48,000 contracts, in soyabeans by about 62,000 contracts and in corn by about 101,000 contracts. Also, storms this week should bring beneficial moisture to US winter wheat areas, with snow in the Midwest and rain in the Southeast.
Soyabean futures came under pressure from rains expected next week in dry areas of Argentina, the world's No. 3 soyabean grower and the No. 1 exporter of soyabean meal, used as animal feed. If the storms fail to materialize, Argentine soya production prospects would decline sharply, Sierra said.
CBOT corn futures found underlying support from export demand for US corn. The US Department of Agriculture reported export inspections of US corn in the latest week at 1.07 million tonnes, slightly above a range of trade expectations.