(Reuters) – Chicago wheat edged lower on Tuesday, snapping a three-session rising streak as lack of demand for U.S. cargoes capped the rally which was triggered by uncertainty over Russia’s grain export policy.
Corn eased on supply pressure as U.S. farmers boosted sales to take advantage of prices climbing on Monday to their highest since early July.
“Investment money that is pouring into agricultural markets and the ongoing discussion about Russian wheat exports are probably enough reasons for the futures to rally,” said Simon Clancy, a director at IKON Commodities in Sydney.
“On the other hand, cash markets don’t look enthusiastic about the futures rally, they look fair bit softer.”
U.S. FOB Gulf corn basis offers drifted lower on Monday on muted demand and ample supplies in the export pipeline following active farmer selling over the past few days, traders said.
Soft red winter wheat export premiums at the Gulf fell as futures surged and U.S. prices remained at a steep premium to rival exporters’ supplies.
Chicago Board of Trade wheat for March delivery lost 0.4 percent to $6.16-1/2 a bushel by 0308 GMT after climbing to its highest since July 7 on Monday with support from concerns over Russian supplies.
March corn contract fell 0.1 percent to $4.08-1/4 a bushel and January soybeans was down 0.1 percent to $10.38 a bushel.
Some traders said commodity funds were covering short positions on worries that Russia, a major global grain supplier, might slow exports at a time when the tumbling rouble currency was raising domestic prices.
Russia should limit grain exports through companies registered offshore, the country’s agriculture minister told the TASS news agency, suggesting a way the government could curb exports while avoiding an embargo.
Soybeans fell for a second day on pressure from lighter-than-expected monthly usage. The National Oilseed Processors Association said its U.S. members crushed 161.2 million bushels of soybeans during November, the most ever for the month. But the figure fell below the average analyst estimate of 165.4 million bushels.
