Wheat and corn tumbled a second straight day as traders consider the global outlook for grain availability and appetite for US crops.
Benchmark wheat fell as much as 5.5% and corn touched the lowest price in more than two months amid optimism Ukraine may soon be able to resume exports from the Black Sea. Forecasts for better US farming weather and sluggish world demand for America’s grains are also weighing on futures.
Even with Russia’s attack on Ukraine disrupting trade routes, the US has seen dramatic declines in export sales of wheat as the futures soared to an all-time high following the invasion. US corn sales recently hit a marketing-year low. A new deal paving the way for Brazil and China to boost corn trading between the two nations is further dimming the outlook for US demand.
Another issue is that US production of corn-based ethanol has outpaced a gauge of weekly gasoline demand for “quite some time,” Morrison said.
Chicago wheat futures for July settled Wednesday down 4.3% at $10.4125 a bushel, the lowest since April 7. July corn closed 3% lower at $7.3125 a bushel, the lowest since March 29. Soybeans for July rose.