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Wheat Closes Lower on Concerns About Demand for U.S. Supplies
Wheat futures closer lower on concern about U.S. exports after domestic users have reportedly purchased supplies from Argentina.
Two cargoes of wheat are being shipped from Argentina, according to a Bloomberg report, just a month after newly elected President Mauricio Macri slashed export taxes on agricultural products from the country. Macri was making good on a campaign promise made to farmers during last year’s elections.
The president did away with export levies on beef, wheat, and corn and cut soybean tariffs by 5 percentage points.
Prices also may be falling on speculation that a recent cold snap in the U.S. Midwest didn’t do much damage to plants because most areas had an ample blanket of snow.
Chicago wheat futures for March delivery fell 2 1/4 cents to $4.72 1/4 a bushel on the Chicago Board of Trade. Kansas City wheat for delivery in the same month declined 5 1/4 cents to $4.67 1/2 a bushel.
Soybean futures were sharply lower at midday on concerns over China's economy, as investors shrugged off a report showing better-than-expected growth in 2015.
A report from the American Chamber of Commerce in Shanghai showed that U.S. business owners in China are still optimistic, but expect slower growth in coming years.
"Companies are adjusting downward their future forecasts and investment footprint in response to China's slowing economic growth," the report said.
Soybeans for March delivery lost 9 1/2 cents to $8.74 a bushel in Chicago. Soymeal fell $1.70 to $269.60 per short ton, and soyoil futures dropped 0.24 cent to 29.79 cents a pound.
Corn futures were the sole riser today, gaining 1 1/2 cents to $3.69 1/4 a bushel on the CBOT.
In the outside markets, West Texas Intermediate crude futures plunged 6%, and Brent oil dropped 2.9%.
The Dow Jones Industrial Average and the Standard & Poor's 500 both lost 2.2%.
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