Chicago | Reuters — U.S. wheat futures dropped two per cent on Monday as rising expectations for harvests in Russia and Australia cast a shadow over already weak demand prospects for U.S. supplies, traders said.
“Even though our prices are low, we are still being undersold,” said Al Kluis, managing director of Kluis Commodity Advisors.
Soybean futures firmed to a one-week high, breaking through key technical resistance points on support from a fresh export sale that added to recent string of deals.
Corn futures edged higher, bouncing off a one-month low hit last week on bargain buying and some support from gains in the soybean market. But good conditions for crop development in the U.S. Midwest and the decline in wheat stymied any rally attempts in corn.
The benchmark Chicago Board of Trade September soft red winter wheat futures contract settled down 10-1/4 cents at $5.21 a bushel after hitting a two-week low (all figures US$).
K.C. hard red winter wheat dropped 2.7 per cent to its lowest since July 2.
“We got everybody in Russia talking a bigger crop estimate,” said Dan Basse, president of AgResource Co. in Chicago. “That has got the world’s wheat market under pressure. They are the top exporter and they are going to have an abundance this year.”
Russian agriculture consultancy IKAR on Monday said it had raised its forecast for Russia’s 2020 wheat crop to 79.5 million tonnes from 78 million tonnes.
CBOT November soybean futures were 3-3/4 cents higher at $8.96-1/4 a bushel.
Private exporters reported the sale of 260,000 tonnes for delivery to unknown destinations, the U.S. Agriculture Department said on Monday.
Traders said that China, which has stepped up its buying of U.S. agricultural products in the past month, was the likely buyer.
CBOT December corn settled 1-1/2 cents higher at $3.28-1/2 a bushel.
— Mark Weinraub is a Reuters commodities correspondent in Chicago; additional reporting for Reuters by Michael Hogan in Hamburg and Colin Packham in Sydney.