U.S. wheat futures fell sharply on Wednesday, as traders took profits following a multi-day rally and shifted attention back toward weak U.S. export demand and a stronger dollar.
Before declining today, the benchmark Chicago wheat market posted four consecutive sessions of gains, fuelled partly by renewed Russia-Ukraine tensions and concerns about Black Sea grain movement. Meanwhile, despite the ongoing disruptions in the Black Sea, U.S. wheat exports remain well below year-ago levels, while recent strength in the U.S. dollar has made American grain less competitive internationally. December Chicago lost 17 ¾ cents to $6.86 ½, and December Kansas City was down 17 ¾ cents at $7.38 ½. December Hard Red Spring fell 12 ¾ cents to $7.23 ½, and December Minneapolis was 9 ½ cents lower at $7.10 ¼.
Corn and soybean losses were more moderate as both markets consolidated ahead of Friday’s USDA crop production and supply-demand reports.
December corn slipped after Tuesday’s nearly 11-cent rally. Traders expect USDA to trim its U.S. corn yield estimate from September, but large old-crop stocks and improving harvest weather are limiting enthusiasm. December slipped 6 cents to $5.02, and March lost 5 ¼ cents to $5.17.
Expectations that USDA will leave its soybean yield and production estimates relatively close to September levels encouraged traders to reduce positions ahead of the report. Harvest pressure also weighed. November beans fell 5 ½ cents to $12.97 ½, and March was down 4 ¾ cents to $13.24.
