U.S. wheat futures collapse with USDA statement in focus
U.S. wheat futures turned lower on Monday, while investors readjusted positions following the U.S. Department of Agriculture’s closely-observed monthly supply and demand report due on Tuesday.
On the Chicago Mercantile Exchange (CME), US wheat for March supply dropped 0.63% or 3.33 cents, to trade at $5.2388 a bushel throughout U.S. morning hours.
On Friday, US wheat for March delivery tacked on 0.24% or 1.2 cents, to close at $5.2700 a bushel.
The March wheat deal rallied 4.79% or 24.75 cents, last week, the first weekly gain in seven weeks, amid assumption lower prices will boost demand for U.S. supplies.
Wheat has been under serious selling pressure in recent weeks with plenty global supplies and indications of cheap demand for U.S. wheat.
In the meantime, US corn for March supply tacked on 0.01% or 0.03 cents, to trade at $3.8563 a bushel.
US corn for March supply hit a daily peak of $3.8940 a bushel on Friday, the highest since January 22, before ending at $3.8560, up 0.13% or 0.4 cents.
The March corn deal jumped 4.05% or 15.72 cents, last week. Regardless of recent gains, corn prices remained at risk following cheap demand for corn-based ethanol and plenty supplies in the U.S.
Elsewhere on the Chicago Board of Trade, US soybeans for March supply dipped 0.08% or 0.75 cents, to trade at $9.7325 a bushel.
On Friday, US soybeans for March supply dropped 0.79% or 7.6 cents, to end at $9.7340 a bushel. The March soybean deal increased 1.29% or 12.02 cents, last week, the first weekly rise in four weeks.
Prices of the oilseed have been evaluated by concerns over weakening demand from China and along with optimism over crop prospects in Brazil and Argentina.
Corn is the largest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.