GRAINS-Wheat Falls to 18-Day Low as Global Supply Picture Weighs

January 30th, 2017

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Category: Grains

golden wheat field against blue sky(Reuters) – U.S. wheat fell to an 18-day low on Monday as ample global supplies pushed two-day losses to more than 2 percent.

Soybeans edged lower to touch its lowest in more than two weeks, while corn also fell.

The most active wheat futures contract on the Chicago Board of Trade fell 0.59 percent to $4.18 a bushel by 0419 GMT, earlier touching their lowest since Jan. 12 at $4.17 a bushel. Wheat closed down 1.5 percent on Friday.

“There is still a lot of wheat in the hands of producers and the trade, so we don’t think prices have a lot of traction,” said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.

The most active corn futures eased 0.41 percent to $3.61 a bushel, having ended down 0.34 percent in the previous session.

Wheat and corn both came under pressure on concerns about potential disruptions to U.S. exports to Mexico amid a souring of relations between the two countries.

Mexico was the top buyer of U.S. corn in the 2015-16 marketing year and the No. 2 buyer of U.S. wheat, according to U.S. Department of Agriculture (USDA) data.

The most active soybean futures fell 0.74 percent to $10.41-1/2 a bushel, having earlier hit a low of $10.40-1/4 –  lowest since Jan. 13. Soybeans closed Friday little changed.

Traders were also monitoring the harvest in Brazil’s top-producing state of Mato Grosso, where rains have slowed the pace of fieldwork.

 

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