Chicago | Reuters — U.S. wheat futures fell across the board on Tuesday on soft demand and as supply concerns weakened in the Southern Hemisphere, while soybean futures pushed higher on adverse weather in Brazil.
The most-active wheat contract on the Chicago Board of Trade (CBOT) ended down 9-3/4 cents at $5.56-1/4 per bushel and hit its lowest price since Oct. 12 (all figures US$).
“The market is still kind of complaining about the lack of demand,” said Jack Scoville, market analyst at The Price Futures Group.
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K.C. hard red winter wheat ended down 15-3/4 cents at $6.29-1/4 a bushel and set a contract low of $6.25-1/2. MGEX spring wheat was 8-1/2 cents lower at $7.09-/14 a bushel, after reaching a contract low of $7.03-1/4.
The wheat market has been dominated in recent months by large exports of cheap Russian grain pushing down prices and China snapping up imports of the cereal.
In Russia, where the harvest is nearly coming to an end, consultancy Sovecon estimated wheat exports will reach 4.4 million tons in October, down from 4.5 million tons a year ago.
China is set to import record volumes of wheat this year, trading sources say, with rain damage to its crop and worries over dry weather in exporting nations fuelling Beijing’s appetite to buy while prices are low.
Still, China has “not been a particularly notable buyer from the U.S.,” Scoville said. He noted that if CBOT wheat drops to $5.50 a bushel, demand interest may start to develop.
Downpours in Argentina have lessened the threat of further yield loss there, helping send prices lower in recent days.
Hot and arid weather in northern Brazil and heavy rains to the south helped support soybean futures, analysts said.
CBOT soybeans finished 3-1/4 cents higher at $13.10-1/2 per bushel, while corn rose 1/2 cent to $4.78-3/4 per bushel.
USDA confirmed private sales of 239,492 metric tonnes of U.S. soybeans to Mexico.
— Brendan O’Brien is a Reuters breaking news reporter in Chicago; additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris.
