May 15, 2020
US wheat hits near two-month low on ample global stocks
Weighed down by abundant global supplies as the COVID-19-induced lockdown led to poor grain demand, US wheat futures plunged to an almost two-month low on Thursday, reported Reuters.
Corn edged lower, extending losses into a second consecutive session, while soybeans fell for a third straight day.
The most-active wheat futures on the CBOT fell 0.6% to US$4.98-3/4 a bushel by 0352 GMT, near the session low of US$4.98-1/4 a bushel - the lowest since March 18. Wheat closed down 2.5% on Wednesday.
"The market still seems to be reacting to the USDA's re-framing of the global wheat market's season 2020 outlook to a worse position," said Tobin Gorey, director of agricultural strategy, Commonwealth Bank of Australia.
The USDA projected that global wheat stocks at the end of the 2020/21 marketing year would rise to a record-large 310.12 million tonnes, up from 295.12 million at the end of 2019/20.
The most active soybean futures were down 0.4% at US$8.36-1/2 a bushel, having closed 1.5% lower on Wednesday.
The losses came despite persistent Chinese demand.
Improved crop prospects in the US might also fuel pressure on the oilseed, analysts noted.
Weather forecasts in the Midwest crop belt were generally favourable for seeding. The USDA said the US soybean crop was already 38% planted and the corn crop was 67% planted by Sunday, both ahead of their respective five-year averages.
The USDA confirmed private sales of 396,000 tonnes of US soybeans to China, a day after reporting sales of an additional 136,000 tonnes to the world's leading soy importer.
The most active corn futures were down 0.2% at US$3.17-3/4 a bushel, having closed 1.2% lower in the previous session.
China is allocating more low-tariff import quotas for corn this year and may expand its use of wheat quotas as it seeks to step up farm purchases from the US and meet a pledge to comply with global trade rules, according to sources.