Wheat falls back after hitting 2-week high; soy, corn also down

Retreat in oil prices, firm dollar weigh on grains

  

SINGAPORE/PARIS- Chicago wheat futures pulled back from a two-week high hit earlier on Thursday as weaker crude oil prices and a firmer U.S. dollar offset tightening global supplies.

Soybeans fell after rising for five straight sessions, while corn edged lower.

The most-active wheat contract on the Chicago Board of Trade (CBOT)  was down 0.6% to $7.44-1/2 a bushel at 1115 GMT, after hitting 7.52-1/2 in early trade, its highest since Oct. 7.

Soybeans Sv1 fell 0.7% to $12.36-3/4 a bushel and corn fell 0.5% at $5.36-3/4 a bushel.

"The interim rise in the prices of various agriculturals yesterday was chiefly attributable to the weaker U.S. dollar," Commerzbank said in a note.

The U.S. dollar index was slightly higher at 1030 GMT, at 93.648 =USD .

A fall in crude oil prices was also weighing grain futures, mainly corn.

Strategie Grains sharply increased its forecast for this year's maize crop in the European Union, which led the consultancy to trim its forecast for EU maize imports in the 2021/22 season.

The U.S. corn and soybeans harvests are more than half complete and some end-users are raising their basis bids as they work to draw out supplies from farmers.

The U.S. Energy Information Administration said production of corn-based ethanol in the latest week rose to 1.096 million barrels per day, the biggest weekly total since June 2019, while stockpiles increased to 20.080 million barrels. 

Argentine farmers have sold 31.9 million tonnes of soybeans harvested in the 2020/21 season, the Agriculture Ministry said on Wednesday in a report with data updated through Oct. 13. 

On other oilseed markets, Malaysian palm oil futures pulled back from a record high to end lower on Thursday, rattled by concerns over tightening regulations on the commodities market in China.

Commodity funds were net buyers of CBOT soybean, corn, wheat, soyoil and soymeal futures contracts on Wednesday, traders said. 

US cents/bushel, Paris futures in euros per tonne

(Reporting by Naveen Thukral and Sybille de la Hamaide Editing by Uttaresh.V and Mark Potter) ((naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net))


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