By Michael Hirtzer
CHICAGO, Sept 26 (Reuters) – U.S. corn and soybeans extended
losses to reach fresh four-year lows on Friday as weather
conditions remained ideal for record harvests in the Midwestern
crop belt while new highs in the dollar made the supplies less
competitive in global markets.
Wheat futures were narrowly higher, pressured by prospects
of a record global crop this season.
The dollar widened gains over a basket of other currencies
, giving shippers in Europe and South America more room to
undercut United States corn, soybeans and wheat.
“You have a wall of grain coming at you – more than enough
to meet demand,” said Tom Fritz, analyst at brokerage EGF Group
in Chicago. “The market is trying to find a level where the
demand is, and prices are telling us we haven’t found it.”
Chicago Board of Trade soybean futures were posting the
largest declines in the grains complex, with further pressure by
news that top global soy importer China has suspended the import
approval process for an unnamed genetically modified variety.
China also will celebrate Golden Week beginning next week -
a time that typically sees a slowdown in buying.
Most-active CBOT November soybeans eased 1 percent, or
9 cents, to $9.13-3/4 per bushel, the lowest level since
February of 2010 on a continuous chart.
CBOT December corn futures eased 2-1/4 cents to
$3.23-3/4 as of 11:51 a.m. CDT (1651 GMT). Corn earlier fell as
low as $3.23-1/2 – the lowest point since September of 2009.
Weather during the next five days will remain largely ideal
for the U.S. harvest, with no freeze expected and only minimal
chances of heavy rainfall, the Commodity Weather Group said in a
note to clients.
“We will get a lot of beans cut in the next three days. The
attitude is that the producer will go after his beans first and
let the corn dry down,” Fritz added. “Corn has some decent
moisture and if (farmers) want to pay to dry it, that adds
insult to injury.”
CBOT December wheat was down 1-1/4 cents to $4.72-3/4,
in an “inside day” on the charts after hitting contract and
four-year lows during the previous session.
Prices for each crop were heading for weekly and quarterly
declines ahead of the final trading days of the third quarter
next week.
The International Grains Council on Thursday raised its
forecast for the 2014/15 global wheat crop to a record level due
to an improved outlook in the European Union and Ukraine, adding
to a picture of ample supply.
An expected drop in production in No. 4 exporter Australia
failed to stem concern about excess supplies.
Australia’s wheat production is expected to drop 11 percent
this year as a dry spring in some of the country’s key producing
states curbs yields, a Reuters survey showed.
“This in itself is hardly likely to be enough for the wheat
price to make any sort of noticeable recovery, for the plentiful
crops in the northern hemisphere, where harvesting is almost
complete, have caused supply to grow considerably,” Commerzbank
said in a market note.
(Additional reporting by Nigel Hunt in London and Naveen
Thukral in Singapore; Editing by Michael Urquhart and Gunna
Dickson)
