(Wall Street Journal) – U.S. corn and soybean futures declined Thursday as selling resumed amid concerns over weak demand for U.S. supplies.
Meanwhile, wheat nudged higher.
Corn prices fell to a fresh more than three-week low following disappointing export-sales data and largely favorable weather forecasts for the U.S. Midwest after weeks of steady rain. The U.S. Department of Agriculture on Thursday said net corn sales for delivery in 2014-15 hit a crop-year low in the week ended July 16, and were down 54% from the prior four-week average. Meanwhile, weekly export sales for the 2014-15 and 2015-16 crop years combined came in at the low end of analysts’ expectations, with net sales totaling 534,800 metric tons, after analysts had anticipated sales of 500,000 to 1.05 million metric tons.
“With the weather turning more benign, people are focusing on demand and they don’t like what they see,” said Jim Gerlach, president of commodities brokerage A/C Trading Co., based in Fowler, Ind., who added that commitments from foreign buyers to purchase U.S. corn after Sept. 1 are down substantially from year-ago levels.
The strong U.S. dollar is deterring buyers, Mr. Gerlach said, while ample world stockpiles and stiff competition from rival exporters also mean “we’re getting back to the point where the U.S. will be seller of last resort.”
Corn futures for September delivery sank 3 3/4 cents, or 0.9%, to $3.99 a bushel at the Chicago Board of Trade, the lowest intraday price since Jun. 30.
Soybean prices also dropped, buffeted by worries over slow demand for U.S. supplies. The USDA said net soybean sales in the week ended July 16 totaled 322,600 metric tons, which was at the low end of analyst forecasts for sales of 200,000 to 800,000 metric tons.
“Everyone got spooked because export sales weren’t very good again today,” said Mr. Gerlach, adding that cheaper supplies from South America have helped curtail foreign commitments to purchase U.S. supplies to less than half what they were a year ago.
CBOT August soybeans sank 10 1/2 cents, or 1%, to $10.10 1/4 a bushel.
Wheat prices gained modestly, bolstered by better-than-expected export sales for the grain last week. However, weakness in nearby markets and the advancing U.S. harvest limited wheat’s gains, analysts said.
CBOT September wheat added 1/4 cent, or 0.1%, to $5.17 a bushel.
