Wheat down to contract lows on hefty global supplies
U.S. grain prices fell about one per cent on Monday, with benchmark Chicago Board of Trade December corn sinking to a nearly one-year low, on technical selling and easing concerns that dry weather would reduce harvests.
Several CBOT wheat futures contracts dropped to lifetime lows, while soybeans notched small declines.
Soyoil and palm oil futures both gained ahead of the U.S. Department of Commerce’s expected announcement at midday Tuesday of countervailing duties on imports of Argentine and Indonesian biodiesel.
“There’s not many areas left in the United States that will have substantial drought impact, and there’s a lack of bullish news (in wheat),” said Futures International analyst Terry Reilly.
Rainfall was expected to benefit soybeans and corn in the top growing state of Iowa, INTL FCStone said in a client note.
Scouts on an annual U.S. crop tour found variable yields for corn and soybean crops in parts of Ohio and South Dakota on the first of a four-day swing through the Midwest.
The U.S. Department of Agriculture after the close of trading increased U.S. soybean good-to-excellent crop condition ratings, matching analyst expectations. Spring wheat ratings also increased when analysts predicted flat ratings while corn crop conditions were unchanged.
“Climatic conditions have improved, and whatever threat there is to some crops has already been priced in,” said National Australia Bank agribusiness economist Phin Ziebell....MORE