By Mark Weinraub
CHICAGO, Could 19 (Reuters) – U.S. soybean and wheat futures fell greater than 2% on Wednesday, with merchants noting promoting by funding funds as commodity contracts tumbled by means of key technical assist factors.
Probably the most-active corn futures ended unchanged, steadying after buying and selling in damaging territory for a lot of the session. Deferred contracts had been barely decrease.
Wheat futures notched the most important decline, with the most-active CBOT tender pink winter wheat contract Wv1 sagging 2.7% to its lowest in practically a month. Wheat confronted extra stress prospects for giant harvests in the US.
Sharp declines within the crude oil market sparked a spherical of risk-off buying and selling by speculators who had constructed up bullish bets in agricultural commodities prior to now few months on account of considerations about provide shortages.
“Power is getting dumped on fairly exhausting right now,” stated Mark Schultz, chief market analyst at Northstar Commodity. “All people is nervous about what’s going on. We’re in liquidation. If we do not recuperate, we can have some margin calls.”
Chicago Board of Commerce Could tender pink winter wheat futures WN1 ended down 18-3/four cents at $6.79-1/four a bushel, bottoming out at its lowest since April 21.
Crop scouts on the primary day of the Wheat High quality Council’s annual tour of Kansas projected a mean yield for exhausting pink winter wheat within the northern a part of the state at 59.2 bushels per acre, up from 46.9 bushels in 2019.
CBOT July corn CN1 was flat at $6.58-1/four a bushel, with the market shrugging of one other buy of 1.36 million tonnes of the yellow grain by China.
Power within the money market underpinned corn futures.
The U.S. Agriculture Division’s announcement of the sale was the fifth day in a row it has reported a cope with China.
CBOT July soybeans SN1 had been down 36 cents at $15.38-1/four a bushel.
(Further reporting by Colin Packham in Sydney and Sybille de La Hamaide in Paris; Modifying by Subhranshu Sahu, Will Dunham, Emelia Sithole-Matarise and Richard Chang)
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