MARKET DEVELOPMENT
Soyabeans, Wheat and Corn Fall on Profit-taking
Soyabeans, Wheat and Corn Fall on Profit-taking
25/03/2016 (Reuters) - US grain and oilseed prices fell on Wednesday, with soyabeans retreating from five-month highs as investors took profits and as a rising dollar made the commodities more expensive in global markets. Soyabeans declined for the first time in six sessions, giving back a portion of their recent gains as harvest advanced of a record large Brazilian crop.
"Soyabeans are seeing a pullback today ... with some market participants assessing that soyabean prices are too high in view of the fundamental background of large supplies with a bumper crop in South America," said Frank Rijkers, agrifood economist at ABN Amro Bank.
Chicago Board of Trade soyabeans for May delivery settled 5 cents lower at $9.05-1/4 per bushel. Soyaoil futures tumbled as much as 1.7 percent, following earlier declines in Malaysian palm oil and as crude oil also fell sharply.
CBOT May corn fell 1-1/2 cents to $3.68-1/2 per bushel, declining from what had been the highest levels in nearly a month. CBOT May wheat eased 3-3/4 cents to $4.63 per bushel, nearing their lowest levels in almost a week. Concerns that bitter cold temperatures damaged young wheat plants in dry parts of the southern US Plains propelled prices higher in recent days, but US wheat and corn have lost favour in export markets due to cheaper supplies on offer in South America and the Black Sea region.
Additionally, snowfall and rains in parts of the Plains were seen as beneficial for developing wheat plants and also provided subsoil moisture for upcoming corn plantings in states such as Nebraska. "We put in a small weather premium for the time being," Crossroads Co-op analyst Joe Christopher said. "The freeze concerns for wheat were probably genuine, but it will be several weeks before we know."
"Soyabeans are seeing a pullback today ... with some market participants assessing that soyabean prices are too high in view of the fundamental background of large supplies with a bumper crop in South America," said Frank Rijkers, agrifood economist at ABN Amro Bank.
Chicago Board of Trade soyabeans for May delivery settled 5 cents lower at $9.05-1/4 per bushel. Soyaoil futures tumbled as much as 1.7 percent, following earlier declines in Malaysian palm oil and as crude oil also fell sharply.
CBOT May corn fell 1-1/2 cents to $3.68-1/2 per bushel, declining from what had been the highest levels in nearly a month. CBOT May wheat eased 3-3/4 cents to $4.63 per bushel, nearing their lowest levels in almost a week. Concerns that bitter cold temperatures damaged young wheat plants in dry parts of the southern US Plains propelled prices higher in recent days, but US wheat and corn have lost favour in export markets due to cheaper supplies on offer in South America and the Black Sea region.
Additionally, snowfall and rains in parts of the Plains were seen as beneficial for developing wheat plants and also provided subsoil moisture for upcoming corn plantings in states such as Nebraska. "We put in a small weather premium for the time being," Crossroads Co-op analyst Joe Christopher said. "The freeze concerns for wheat were probably genuine, but it will be several weeks before we know."