(Reuters) – U.S. wheat eased for a fifth straight session on Wednesday, hitting a new contract low as ample global supply continued to pressure prices. Soybeans fell for the first time in four sessions and corn gave up some of Tuesday’s gains as traders squared positions ahead of the U.S. Federal Reserve’s decision on its stimulus programme.
“Sentiment in the wheat market is rather bearish as large crops are replenishing global supplies, giving little reason for the market to trade higher,” said Luke Mathews, commodities strategist at Commonwealth Bank of Australia.
“It looks like we are heading towards 600 cents.”
Chicago Board of Trade March wheat had dropped 0.4 percent to $6.17-1/2 a bushel by 0327 GMT, a contract low, while January soybeans lost 0.5 percent to $13.39-1/2 a bushel.
March corn dipped 0.2 percent to 4.26 a bushel after rising 0.8 percent on Tuesday.
Global wheat stocks are projected to rise in 2013/14, largely reflecting a record crop in Canada, the U.S. Department of Agriculture said in its monthly supply-demand report last week.
The USDA pegged world wheat ending stocks at 182.8 million tonnes, a two-year high and 2 percent larger than the market expectation.
Worries the U.S. Federal Reserve may begin to wind down its market-friendly, bond-buying economic stimulus programme also pressured markets.
The Federal Open Market Committee will release a policy statement at 1900 GMT, followed by Chairman Ben Bernanke hosting a keenly-awaited news conference a half hour later.
That stimulus has been a major contributor to gains in equity markets this year and has affected market sentiment in commodities.
Soybeans, which have performed better than corn and wheat futures in recent weeks, fell after three days of gains.
U.S. domestic and export demand for soybeans and soymeal has been brisk, a fact demonstrated in Monday’s report from the National Oilseed Processors Association.
The NOPA said U.S. members crushed 160.1 million bushels of soybeans in November, up from 157.1 million in October and the most for any month since January 2010.
The outlook for a bumper South American soybean harvest early next year and prospects for China to shift its buying away from the United States also pressured beans.
Satisfactory crop weather continues in South America with the few dry areas likely to receive showers soon, said Don Keeney, meteorologist for MD Weather Services.
Keeney said the dry areas in Argentina were in small crop-growing regions and that corn and soybeans are not mature enough at this time to be harmed by heat or drought.
Overall satisfactory crop weather continues in Brazil.
