Wheat falls 1pc on USDA outlook for big global supply

imageCHICAGO: US wheat futures fell 1.5 percent on Tuesday, declining for the first time in four sessions after the US Department of Agriculture in a monthly report estimated world ending stocks larger than analysts anticipated.

Soybean futures shed 1 percent while corn was narrowly lower. Prices for all three crops extended declines in the wake of the USDA report that overall was seen as neutral but nevertheless showed ample grain and oilseed supplies.

“There’s nothing in the report that was different than what we were expecting. At the end of the day, we still have too much supply,” said AgResource Co analyst Dan Basse.

“Next week’s USDA outlook is unlikely to be very bullish. In between, we’re harvesting record South America crops,” Basse added.

USDA pegged global wheat ending stocks at 197.85 million tonnes, up from the average analyst estimate of 195.83 million and the largest supply since 2009/10 marketing season.

Domestic ending stocks for corn and soybeans were smaller than average estimates but within the range of expectations. Global corn production increased by 5 million tonnes due to larger harvest outlooks for Ukraine and Argentina, both of which have taken away export market share from the United States in recent years.

USDA could tweak its forecasts late next week when the agency holds its annual outlook forum.

CBOT wheat for March delivery finished 8 cents lower at $ 5.21-3/4 per bushel.

“The wheat numbers were just negative across the board, with the US and world carry-outs bigger than we thought,” said Joe Vaclavik, president of Standard Grain.

CBOT March corn eased 3-1/4 cents to $ 3.88 per bushel, still hovering near the highest levels in about three weeks.

CBOT March soybeans fell 9-1/2 cents to $ 9.69, the lowest level in a week.

Copyright Reuters, 2015

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