Soybeans sink to lowest since 2009, corn firm
CHICAGO - U.S. corn and soybean futures eased on Monday, hitting its lowest in more than 6-1/2 years on ample supplies both domestically and globally, traders said. Corn futures edged higher, supported by a round of bargain buying and short-covering.
CHICAGO - U.S. corn and soybean futures eased on Monday, hitting its lowest in more than 6-1/2 years on ample supplies both domestically and globally, traders said.
Corn futures edged higher, supported by a round of bargain buying and short-covering. But the gains were kept in check by pressure from burgeoning stocks as U.S. farmers wrapped up harvest.
"It is a dire situation for the markets at this point ... with corn and beans perched perilously above last week's contract lows and holding," Matt Zeller, director of market information at INTL FCStone, said in a note to clients.
Wheat futures were mixed, with Chicago Board of Trade soft red winter wheat contracts easing on poor export demand while higher-protein MGEX spring wheat and K.C. hard red winter wheat contracts firmed on concerns about weather in the Black Sea region.
CBOT January soybean futures were down 1/4 cent at $8.55 a bushel at 10:32 a.m. CST (1632 GMT). Prices for the front-month contract hit the lowest since March 3, 2009 early in Monday's session.
CBOT December corn was 3/4 cent higher at $3.59 a bushel.
Both crops touched contracts lows last week after the U.S. Department of Agriculture raised its outlook for U.S. productions and stocks in a monthly report.
Chicago Board of Trade December wheat was down 1/4 cent at $4.95-1/2 a bushel. K.C. December hard red winter wheat was 3 cents higher at $4.68-1/2 a bushel while MGEX December spring wheat was up 2-1/4 cents at $5.06-1/2 a bushel.
A firm dollar also contributed to the generally bearish tone hanging over the grain markets and kept most buyers on the sidelines. A stronger dollar tends to pressure commodities priced in the U.S. currency as it makes them more expensive for overseas buyers.
"The dollar strength is certainly adding downward pressure to wheat prices, but the other elephant in the room is fundamentals, which are very good," said Phin Ziebell, agribusinesseconomist, National Australia Bank.
Wheat has also come under pressure from rain relief for dry U.S. growing belts, although traders remain concerned that drought in Ukraine and Russia, also major exporters, could significantly cut next year's production.