(Reuters) – U.S. wheat futures hovered near a three-month low on Friday after dropping 1.5 percent the session before on expectations of a bumper global crop, with the grain poised for its biggest weekly loss in a month.
Corn declined for a second straight session, while soybeans fell and were on course for their first weekly loss in three.
Chicago Board of Trade March wheat futures were unchanged at $6.52-3/4 a bushel, having slumped in the previous session, when they hit their lowest since Sept. 16 at $6.50-3/4 a bushel.
Wheat is down nearly 2.5 percent for the week – its largest weekly loss in a month.
“This week, (Australia) has lifted its production number, you’ve had the Canadians put out a record wheat crop and the United Nations’ Food and Agriculture Organization revised higher global wheat production, it all bodes poorly for prices,” said Luke Mathews, commodities strategist at the Commonwealth Bank of Australia.
Wheat prices came under further pressure on Thursday after the U.S. Department of Agriculture reported weaker-than-expected export figures.
The USDA said net sales of U.S. wheat totaled 229,200 tonnes, well below trade estimates for 450,000 – 550,000 tonnes.
Wheat prices had drawn some support earlier in the week from expectations of increased demand for U.S. stocks, but forecasts for bigger production from Canada and Australia weighed.
Statistics Canada said on Wednesday that farmers produced a record 37.53 million tonnes of wheat in 2013, well above market expectations.
Australia raised its forecast for wheat production during the 2013/14 season by 7 percent on December 3.
January soybean futures fell 0.51 percent to $13.21-1/4 a bushel, pushing losses to 1 percent for the week in its first weekly decline in three weeks.
Argentina is not on the verge of cutting its soybean export tax despite market rumors to the contrary and pressure on the government to stimulate international sales, a well-placed source at the agriculture ministry said on Thursday.
March corn futures fell 0.4 percent to $4.31-3/4 a bushel, having slid 0.7 percent on Thursday.
Despite two days of losses, corn futures are up 1.7 percent for the week, the first weekly gain in a month and the biggest jump in nearly two months.
