U.S. grain futures fall to multi-month lows on ample supplies
U.S. grain futures traded considering their lowest levels in almost three months on Thursday, as signs that global supplies are more than plenty to meet demand drove down prices.
On the Chicago Mercantile Exchange, US corn for March delivery touch a session low of $3.7038 a bushel, a level not seen since November 20, before trading at $3.7063 throughout U.S. morning session, down 0.69% or 2.58 cents.
A day previous, US corn for March delivery dropped 2.1% or 8.0 cents, to settle at $3.7320.
Corn prices have decreased nearly 5% so far in January as reduced demand for corn-based ethanol and plenty supplies in the U.S. weighed.
In the meantime, US wheat for March delivery traded at $5.0238 a bushel, losing 0.56% or 2.83 cents. Earlier in the day, prices touched $5.0100, the weakest level since October 14.
Again on Wednesday, US wheat for March delivery dropped 2.65% or 13.6 cents, to close at $5.0520 a bushel.
Wheat is losing nearly 12.5% so far in 2015 amid abundant global supplies and indications of reduced demand for U.S. wheat.
Prices are roughly 24% lower than a recent peak of $6.7687 touch on December 18, meeting the explanation of a bear market.
Elsewhere on the Chicago Board of Trade (CBOT), US soybeans for March delivery inched down 0.01% or 0.07 cents, to trade at $9.7013 a bushel.
The March soybean contract touched $9.6620 on Wednesday, the lowest level since October 23, before closing at $9.7020, 0.36% or down 3.4 cents.
Soybean prices have been under pressure in recent weeks amid concerns over weakening demand from China and as optimism over crop projections in Brazil and Argentina underlined worries over plenty global supplies.
Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.