Wheat falls on global supply expectations ahead of USDA report

imageSYDNEY: US wheat futures resumed their downward trend on Tuesday, edging lower after a spike in the previous session, as expectations of ample global supply weighed on prices.

Corn fell, giving back nearly some of its gains from the previous session, while soybeans were little changed.

Chicago Board of Trade May wheat dipped 0.2 percent to $ 4.89 a bushel, having closed up 1.6 percent in the previous session as traders covered short positions ahead of the the US Department of Agriculture’s latest supply and demand forecast.

However, analysts said the market’s fundamentals are unchanged.

“People are wondering what the USDA report will say, but the reality remains that there is plenty of supply and if you are in the market for wheat, you have a lot of options,” said Phin Ziebell, agribusiness economist, National Australia Bank.

The USDA report due later in the day is expected to raise the estimate for 2014/15 wheat ending stocks to 699 million bushels, up from 692 million bushels in February, according to a Reuters’ poll.

May corn fell 0.2 percent to $ 3.88 a bushel, after gaining 0.7 percent in the previous session.

Corn had drawn support from firm cash values in the Midwest and the US Gulf as corn processors and exporters tried to draw out grain sales from reluctant farmers.

May soybeans fell 0.1 percent to $ 9.92-1/4 a bushel, having firmed 0.84 percent on Monday.

Losses in soybeans remain capped by uncertainty surrounding the USDA estimate, analysts said.

Analysts predict the USDA will trim its forecast for US 2014-15 soybean ending stocks to 376 million bushels, down from the February figure of 385 million bushels.

The market remains concerned by truck driver strikes in Brazil, potentially slowing exports from one of the world’s largest soybean exporters.

Rainfall in Brazil and flooding in some of Argentina’s soy-growing areas were also a concern. In Brazil, rains have slowed the planting of second-crop corn.

Copyright Reuters, 2015

You may also like...

Rules of Discussion on Wheat falls on global supply expectations ahead of USDA report

1. This forum is for discussion of financial markets. Please respect others view even if they are contrary to you.
2. Member's comments should lead to value addition in forum discussion.
3. If anyone is found making repetitive Explicit/Abusive/Racial comments, his account shall be banned and old posts will be deleted.
4. Providing Advice/Recommendations/Tips is fine but it should be free. Members cannot ask to be paid for it. Paid Advice is stricly prohibited
5. Spam links are not allowed. Too much promotion or using Contact info in ID will lead to account ban.
IMP : Memebrs are requeuested to flag any violations to keep Forum Clean