Wheat, corn fall further on bumper harvest outlook
SINGAPORE/PARIS, June 29 (Reuters) – U.S. wheat prices fell again on Tuesday, extending the previous session’s 1.5 percent loss to trade near their lowest level in more than two weeks on reports of high quality crops from the United States.
Corn prices also edged down nearly one percent, holding near an eight-month trough, under pressure from benign growing weather and the prospect of a bumper harvest. Crop conditions in the United States point to a record corn crop as well as soybeans being at a near record level. CBOT July delivery wheat fell 1.45 percent to $4.43-3/4 a bushel by 1240 GMT and July corn fell 0.75 percent to $3.33. Soy for July was little changed, down 0.08 percent to $9.54-1/2.
“The overlying theme is surplus inventories going into the harvest,” said Greg Smith of Global Commodities in Perth. “The data on Wednesday is likely to set the tone and people are selling anticipating big numbers.” Key USDA plantings and stocks reports on the government’s estimate for U.S. supply of wheat, corn and soybeans will be released on Wednesday. [ID:nN28250615] Also capping sentiment was renewed strength of the dollar against the euro, which hit $1.22 on worries about the expiry of a key euro zone refinancing programme this week. [USD/]
Investors also focused on Monday’s statement from the CME Group that it will raise storage rates on deliverable wheat futures, which could trigger more deliveries ahead of the July contract. [ID:nN28261726] However, weather conditions in Australia are turning more supportive, and weak prices may deter some wheat farmers. “The weather in Australia has been pretty cold and if you haven’t planted wheat yet you are behind the eightball, leaving yourself open to a rain-affected harvest,” a Sydney-based trader said.
Read more: https://www.reuters.com/article/idUSLDE65S1FB/
