US MIDDAY: wheat falls two percent
May 16, 2013
Wheat futures on the Chicago Board of Trade fell more than 2 percent to a two-week low on Wednesday in reaction to technical selling, a stronger US dollar and lacklustre exports of US grain, traders said. Soyabeans fell on chart-based selling and monthly data showing a slower-than-expected US soyabean crushing pace.
Corn was pulled down by soya and wheat in thin trading, but the lead July contract was underpinned by strong cash markets. At the CBOT as of 12:32 pm CDT (1732 GMT), July wheat was down 15-1/2 cents at $6.95-1/4 per bushel. July soyabeans fell 3-3/4 cents at $14.11 a bushel and July corn was down 1/4 cent at $6.52-1/4 a bushel. In wheat, sell-stops were hit as the July contract fell below $7 a bushel.
Wheat came under pressure as the dollar rose to a six-week high versus the euro on evidence that Europe was stuck in recession. A stronger dollar makes US wheat less competitive on the world market. “US soft red winter wheat remains fairly competitive, but US exports have been beaten down due to a pickup in shipments from India, and also Southeast Asian millers seeking Australian wheat,” said Terry Reilly, analyst with Futures International in Chicago. http://zaraimedia.com/
“Dryness concerns for the former Soviet Union are easing somewhat, with better chances of rain for both the Ukraine and Russia over the next two weeks,” FCStone said in a daily note. Soyabean futures fell in choppy trade, pressured by monthly data from the National Oilseed Processors Association (NOPA) showing a smaller-than-expected US soyabean crushing pace.
NOPA reported said the soyabean crush fell to 120.11 million bushels in April, from 137.08 million in March. Technical selling played a role as well. July soyabeans briefly dipped to $14.02-1/4, falling through support at the contract’s 100-day moving average of $14.05. Reuters