Wheat hits 3-mth low, corn falls on supply prospects

June 2nd, 2014

By:

Category: Grains, Oilseeds

(Reuters) – U.S. wheat extended its losing streak on Monday to hit its lowest since March 3, while corn fell for a third session as improved weather in the U.S. grain belt boosted the outlook for supply.

Soy fell to its weakest in two weeks as plentiful South American supplies flood the market and as favourable weather aided planting in the U.S. Midwest.

“Spring wheat planting is getting back on track in the U.S. and Canada,” said Paul Deane, senior agricultural economist at ANZ Bank in Melbourne.

“Spring wheat planting has been the key driver over the last week and funds are liquidating.”

Chicago Board of Trade front-month wheat had fallen as much as 1.8 percent to $6.16-1/4 a bushel by 0241 GMT, the lowest since March 3, and corn gave up as much as 1 percent to $461.25 a bushel.

July soybeans hit their lowest since May 21 at $14.81-1/2 a bushel.

U.S. farmers have nearly finished planting corn in the Midwest and soybean sowing is advancing at a rapid pace amid benign crop weather.

Recent rains have improved the winter wheat crop condition in the U.S. Plains and spring wheat planting is catching up both in Canada and the United States.

Improved crop conditions in the United States come as countries such as Ukraine and Russia have undercut U.S. shippers in international markets, despite concern that tensions between the two countries would disrupt grain trade.

U.S. Department of Agriculture data showed exports of wheat with a net cancellation of 52,400 tonnes for the current marketing season, below analyst expectations.

Ukraine’s 2014 grain harvest may exceed last year’s record output of 63 million tonnes thanks to favourable weather this winter and spring, weather forecasters said.

Soybeans fell as the market continued to weigh up tight old-crop supply against prospects for large U.S. and global production this year.

Large speculators cut their net long position in Chicago Board of Trade corn futures in the week to May. 27, regulatory data released on Friday showed.

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