Outside factors slam grains Thursday
U.S. grain and soybean futures fell Thursday amid a broad selloff in commodities.
Markets were rattled Wednesday and Thursday by fresh signs that the U.S. Federal Reserve is considering pulling back on efforts to support the U.S. economy. On Thursday, the dollar was significantly stronger, while crude oil and equities were lower, leading to pressure on corn and other agricultural commodities as well.
Soybeans were also pressured by worries about the pace of economic growth in China, the world's largest importer of soybeans. The latest concerns about China arose after a preliminary gauge released Thursday suggested that China's manufacturing sector contracted at a faster rate in June compared with May.
"The news out of China with the economic numbers being weak hurt beans more," causing soybeans to fall more than corn, said Craig Turner, an analyst for futures brokerage Daniels Ag Services in Chicago.
Chicago Board of Trade July soybeans fell 25 1/2 cents, or 1.7%, to $14.97 1/2 a bushel, a three-week closing low.
July corn fell 9 cents, or 1.3%, to $6.73 1/4 a bushel.
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Weather forecasts moderated slightly on Thursday, with less-severe heat expected in parts of the Midwest and greater rainfall seen for the eastern Corn Belt.
Wheat saw smaller losses than corn and soybeans, as speculative traders who recently held bearish bets on prices were buying futures to exit those positions, analysts said. That limited the decline in wheat prices.
Wheat's losses were also limited by continued concerns about delayed plantings of spring wheat in the northern Plains. A wet forecast for North Dakota could prevent any late seedings of spring wheat by farmers there still hoping to plant the crop.
CBOT July wheat fell 6 1/2 cents, or 0.9%, to $7.00 1/2 a bushel. KCBT July wheat fell 2 3/4 cents, or 0.4%, to $7.37 a bushel. MGEX July wheat rose 1/2 cent, or 0.1%, to $8.14 a bushel.
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(END) Dow Jones Newswires
June 20, 2013 15:14 ET (19:14 GMT)
DJ UPDATE: U.S. Grains, Soybeans Fall in Commodities Selloff->copyright
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