Wheat futures hit a new six-year low on Tuesday, after US government data showed winter wheat crops coming out of dormancy in good condition, while corn and soybean prices are still facing the prospect of strong South American exports.
True, there was little support on the macro side either, as the Chinese purchasing managers index, an influential survey of industrial sentiment, came in negative for the seventh month in a row, indicating shrinking demand at the world's top commodity buyer.
The dollar hit one-month highs against a basket of world currencies, bringing pressure to bear on dollar-denominated commodities, although it trimmed gains a little, trading up 0.2% in afternoon deals.
Good condition
Data released by the US Department of Agriculture late on Monday showed condition in top-ranked winter wheat grower Kansas improving month-on-month.
Conditions were also improved in Nebraska and South Dakota, while in Oklahoma, traditionally the second-ranked grower conditions were down, but still well above last year's level.
US wheat futures extended losses on the news.
Kansas, Chicago down
Front-month March wheat futures in Chicago were down 1.5%, at $4.38 ½ a bushel, their lowest level since 2010.
And the May contract, which is the most widely traded, was down 1.5%, at a contract low of $4.46 a tonne....MORERecently:
Mar. 1
Intrepid Potash Gets A Going Concern Note, Stock Collapses (IPI)
Feb. 26
USDA Chief Economist Makes A Case For Farmland
Feb. 23
Wheat Futures Hit Six-year Low
Corn 356-6 down 1-2
Wheat 446-0 down 7-2
