June 29, 2010
CBOT wheat futures slip on US crop outlook
US wheat prices fell almost 1%, extending the previous session's 1.5% loss to trade near their weakest in more than two weeks on reports of high quality crops from the United States.
Corn prices also edged down, holding near an eight-month low, under pressure from benign growing weather and the prospect of a bumper harvest. Crop conditions in US point to a record corn crop as well as soy being at a near record level.
CBOT July delivery wheat fell 3-½ cents per bushel to US$4.46 and July corn fell one cent to US$3.32-3/4.
"The overlying theme is surplus inventories going into the harvest," Greg Smith of Global Commodities in Perth said.
"The data on Wednesday is likely to set the tone and people are selling anticipating big numbers."
Wednesday (June 30) sees the release of key USDA plantings and stocks reports on the government's estimate for US supply of wheat, corn and soy.
Also weighing on sentiment was Monday's statement from the CME Group that it will raise storage rates on deliverable wheat futures, which could trigger more deliveries ahead of the July contract.
However, weather conditions in Australia are turning more supportive, while weak prices may deter some wheat farmers.
"The weather in Australia has been pretty cold and if you have not planted wheat yet you are behind the eightball, leaving yourself open to a rain-affected harvest," a Sydney-based trader said.
Soy for July rose half a cent to US$9.55-½ on steady demand from China, but new crop November soy fell 75 cents to US$9.17-¾.
US rice prices fell 0.7% to US$9.90 per hundredweight. The Philippines, the world's top rice importer, will ship in less rice in 2011 than the record imports of 2010, a government official said on Tuesday (June 29).
"It will definitely be lower than the 2.25 million tonnes we have imported this year," Jose Cordero, assistant administrator for the National Food Authority, the state's grain importing arm, said at an international grains seminar.
