(Reuters) – U.S. corn fell for a third straight session on Wednesday to around its lowest in more than a week, pressured by slowing demand for corn-based fuel ethanol as oil prices weaken.
Soybeans were largely unchanged after losing nearly 1 percent in the last session as Chinese demand shifts to South America, which is on track for record production.
Chicago Board of Trade March corn had dropped 0.1 percent to $3.80-3/4 a bushel by 0254 GMT, after declining 0.7 percent the previous session. March soybeans rose three quarters of a cent to $9.74-1/2 a bushel.
March wheat fell a quarter of a cent to $5.18-3/4 a bushel, having closed down 0.3 percent on Tuesday when prices hit a low of $5.17-1/2 a bushel, their weakest since mid-October
“We are seeing a downward move in corn prices because of the ongoing impact of ethanol demand with oil prices having fallen to such a great extent,” said Phin Ziebell, agribusiness economist, National Australia Bank.
“It is not really viable to produce ethanol and this is going to hit corn.”
Crude oil has lost more half of its value in the face of slowing demand and a supply glut which has reduced the appeal of renewable fuels made mainly from grains and vegetable oils.
The soybean market, which climbed more than 1 percent on Monday due to strong demand for U.S. soymeal supplies, has given up those gains.
The U.S. Department of Agriculture confirmed that private exporters cancelled sales of 120,000 tonnes of soybeans to China for delivery in 2014/15.
The agency’s announcement marked the third cancellation this month of soybean sales to top buyer China. The moves reflect a seasonal shift in the focus of the export market from the United States to South America, where the soy harvest is getting started.
