U.S. grain and soybean futures ended lower Tuesday, with wheat markets absorbing the brunt of the selling pressure amid a lack of fundamental support.

The declines were a function of investors acknowledging the market has little supportive features to fight off sellers with ample world supplies and favorable outlooks for U.S. wheat production, said Shawn McCambridge, senior grains analyst with Jefferies Bache in Chicago.

Once corn and soybeans lost value after firm openings, improved U.S. winter wheat crop ratings were seen as bearish features overshadowing support from threats of declining European supplies.

On Monday the U.S. Department of Agriculture reported Oklahoma, Kansas and Texas winter wheat crop ratings each jumped by five percentage points.

The improvement of U.S. crop ratings is a reflection of winter wheat crops fairing well over the winter, McCambridge said. Dryness stress for European wheat continues to provide underlying price support, but without a great deal of concern about U.S. wheat coming out of dormancy, analysts feel record world stocks can effectively absorb any crop losses overseas, he added.

Otherwise, investors in wheat futures were content to await U.S. government data on plantings and inventories due later this week for market direction.

CBOT May wheat ended down 19 3/4 cents at $6.39 3/4 per bushel, May KCBT wheat dropped 20 cents to $6.79 and May MGEX wheat ended down 15 3/4 cents to $8.06 1/4.

Soybean futures finished lower, succumbing to technically driven profit taking. The inability of the market to challenge Monday's highs and a lack of fresh news to extend buying sparked a minor correction in prices.

The bullish theme of the market remains intact, but after prices rallied to six-month highs futures needed fresh supportive news to attract buyers ahead of Friday's planting and inventory report.

Soybean futures for May delivery, which were the most-actively traded, closed down 9 3/4 cents to $13.69 3/4 a bushel.

Corn futures stumbled with the rest of the grain complex, driven lower by expectations for a large U.S. crop this year and the absence of fresh demand news to buoy prices, in the face of price weakness in wheat and soybeans.

CBOT May corn futures, which were the most actively traded, ended down 7 cents at $6.30 3/4 a bushel.

-By Andrew Johnson Jr, Dow Jones Newswires; 312-347-4604; Andrew.johnsonjr@dowjones.com
(END) Dow Jones Newswires
March 27, 2012 16:23 ET (20:23 GMT)
DJ US GRAIN AND SOY REVIEW: Wheat Futures Fall On Lack Of Fundamental Support->copyright