Chicago | Reuters –– U.S. wheat futures fell for the sixth day in a row on Wednesday, extending a losing streak during which the benchmark contract has shed 6.6 per cent of its value because of ample global stocks and waning demand for U.S. supplies.
Corn also was weak, pressured by the drop in the wheat market as well as active planting of the U.S. crop and technical selling.
Soybeans firmed, closing higher on firm cash markets and bargain buying after an early dip sparked some fund buying, traders said.
Wheat notched the biggest losses, falling 2.6 per cent and hitting its lowest in nearly three weeks.
“Wheat is lower across the board as large global supplies are weighing on prices,” said Sterling Smith, futures specialist with Citigroup. “The large gains seen in recent months in the U.S. futures market has priced U.S. wheat out of the market and we are going to need to see a correction to equalize those issues, as global cash prices are not going to climb to meet the board.”
Chicago Board of Trade July soft red winter wheat futures settled down 19 cents at $6.90-1/4 a bushel (all figures US$). The contract fell through key support at its 30-day, 40-day and 50-day moving averages.
CBOT wheat has fallen for six days after hitting a 13-month high of $7.35 on May 6.
CBOT July corn was 7-1/4 cents lower at $4.95-1/2 a bushel, falling below its 50-day moving average and hitting its lowest since April 22.
CBOT July soybeans rose three cents to $14.86-3/4 a bushel.
Traders noted positioning ahead of the monthly U.S. report on crush data and oilseed stocks from the National Oilseed Processors Association on Thursday. The report was expected to show that pace of crushing during April crush was the highest for the month in five years.
— Mark Weinraub is a Reuters correspondent covering grain markets from Chicago. Additional reporting for Reuters by Julie Ingwersen in Chicago.