US grain prices slide back
Thursday, 1 November 2007
CHICAGO, Oct 31 (Reuters): US wheat, soy and corn futures fell yesterday in sympathy with sharp declines in other commodity markets, including crude oil and gold, traders said.
US crude oil futures on the New York Mercantile Exchange led the way, dropping more than 3 per cent on profit-taking. December crude fell more than $3 to settle at $90.38 a barrel, after reaching an all-time high near $94 Monday.
The entire commodity sector was hit by uncertainty over how aggressive the US Federal Reserve will be in fueling economic growth with further interest rate cuts. The Fed began a two-day policy meeting Tuesday.
An early rebound in the US dollar added to the bearish sentiment in grains, although the currency later retreated, setting fresh record lows against the euro in anticipation of a rate cut.
At the Chicago Board of Trade, December wheat fell 14-1/2 cents, 1.8 per cent, to close at $8.14 per bushel.
November soybeans dropped 19 cents, or 1.9 per cent, at $9.92 per bushel. December corn was down 5-3/4 cents, or 1.5 per cent, at $3.70-1/4 a bushel.
Commodity funds sold 4,000 contracts of wheat, 5,000 soybeans and 4,000 corn, traders said.
Firms booked profits in wheat after the December contract climbed its 30-cent limit Monday on export rumors, a weak US dollar and the surge in crude oil prices.
Grain analysts also cited a research note from investment bank Goldman Sachs Tuesday that recommended closing long positions in oil, gold and agriculture commodities.
Kansas City Board of Trade December wheat closed down 17-1/4 cents at $8.37 per bushel and Minneapolis Grain Exchange December spring wheat fell 19 cents, also closing at $8.37.
US wheat futures declined despite news that the Australian government lowered its wheat production forecast to 12.1 million tonnes from a previous estimate of 15.5 million.
CBOT soybeans and soy products, which track the energy markets given the increased amount of vegoils used to produce biodiesel, also declined, reflecting lower crude prices.
Soybean oil futures backed down after soaring to near 33- year highs Monday. CBOT December soyoil ended at 41.68 cents per lb, down 0.52 cent.
US crude oil futures on the New York Mercantile Exchange led the way, dropping more than 3 per cent on profit-taking. December crude fell more than $3 to settle at $90.38 a barrel, after reaching an all-time high near $94 Monday.
The entire commodity sector was hit by uncertainty over how aggressive the US Federal Reserve will be in fueling economic growth with further interest rate cuts. The Fed began a two-day policy meeting Tuesday.
An early rebound in the US dollar added to the bearish sentiment in grains, although the currency later retreated, setting fresh record lows against the euro in anticipation of a rate cut.
At the Chicago Board of Trade, December wheat fell 14-1/2 cents, 1.8 per cent, to close at $8.14 per bushel.
November soybeans dropped 19 cents, or 1.9 per cent, at $9.92 per bushel. December corn was down 5-3/4 cents, or 1.5 per cent, at $3.70-1/4 a bushel.
Commodity funds sold 4,000 contracts of wheat, 5,000 soybeans and 4,000 corn, traders said.
Firms booked profits in wheat after the December contract climbed its 30-cent limit Monday on export rumors, a weak US dollar and the surge in crude oil prices.
Grain analysts also cited a research note from investment bank Goldman Sachs Tuesday that recommended closing long positions in oil, gold and agriculture commodities.
Kansas City Board of Trade December wheat closed down 17-1/4 cents at $8.37 per bushel and Minneapolis Grain Exchange December spring wheat fell 19 cents, also closing at $8.37.
US wheat futures declined despite news that the Australian government lowered its wheat production forecast to 12.1 million tonnes from a previous estimate of 15.5 million.
CBOT soybeans and soy products, which track the energy markets given the increased amount of vegoils used to produce biodiesel, also declined, reflecting lower crude prices.
Soybean oil futures backed down after soaring to near 33- year highs Monday. CBOT December soyoil ended at 41.68 cents per lb, down 0.52 cent.