Chicago wheat futures slid towards their lowest levels since 2020 on Thursday, as cheap Russian supply continued to exert pressure on prices and undermine the competitiveness of U.S. crops.
Soybean and corn futures also edged down on ample supply from the Americas.
The most-active wheat contract on the Chicago Board of Trade (CBOT) was down 0.9% at $5.39-1/2 a bushel at 0309 GMT and nearing Monday’s low of $5.23-1/2, its lowest since August 2020.
Black Sea grain is flooding the market and large crops are expected later this year in Russia, Ukraine and the United States, said Dennis Voznesenski, a Commonwealth Bank analyst in Sydney.
However, dry weather in Canada, concern that a La Nina weather system could harm crops in Argentina and the risk of trade disruption should limit price falls, he added.
Benchmark Russian wheat export prices slipped below $200 a metric ton ($5.44 a bushel) this week for the first time since August 2020, Refinitiv data show.
Around 500,000 metric tons of U.S. wheat export sales to China have been cancelled in the past week, according to the U.S. government, likely due to the recent slide in prices.
Chinese wheat importers have also cancelled or postponed imports of about 1 million metric tons of Australian wheat originally scheduled for shipment in February, March and April sources said.
Farm office FranceAgriMer, meanwhile, increased its forecast for French soft wheat stocks this season to a 19-year high due to weakening export prospects.
Commodity funds were net sellers of Chicago wheat futures on Wednesday, adding to their already significant bearish position, traders said.
CBOT soybeans rose 0.2% to $11.99-1/2 a bushel after rising above $12 for the first time since Feb. 8. Corn was down 0.2% at $4.40-1/4 a bushel after climbing to $4.45 on Tuesday, its strongest since Feb. 6.
Soybeans and corn remain down this year and near their lowest level since 2020, as speculators bet on further on price declines on the CBOT.
Argentina’s Rosario grains exchange raised its forecast for the country’s 2023/24 soybean harvest by 500,000 metric tons to 50 million tons following ample rainfall in February.
Argentina ranks among the world’s top two exporters of soybean oil and meal, alongside neighbouring Brazil.
In Brazil, benchmark industry estimates of the soybean crop have diverged even more this month following a season marked by uncertain weather conditions.
In the United States, farmers plan to reduce corn plantings by about 1.2% this year while expanding their soybean plantings by about 2.7%, a survey by commodity brokerage Allendale showed.
