GRAINS-Wheat, corn and soybean futures sag on recession fears
(Updates prices, adds quotes, changes byline, changes dateline from previous HAMBURG)
By Julie Ingwersen
CHICAGO, Sept 26 (Reuters) - U.S. wheat futures fell more than 2%, and corn and soybeans followed the trend on Monday as fears of a global economic downturn, a rising dollar and expectations of a bumper wheat crop in Russia weighed on commodity markets, analysts said.
Forecasts for favorably dry weather for the harvest in the Midwest added pressure.
"The economic forecast for the global economy is pretty poor. So, as a result we are seeing longs just getting out," said Terry Linn, analyst with Chicago-based Linn & Associates. "Everybody is focused on the dollar," Linn added.
As of 12:48 p.m. CDT (1748 GMT), Chicago Board of Trade December wheat was down 24-1/4 cents at $8.56-1/4 a bushel. CBOT December corn was down 10-3/4 cents at $6.66 a bushel and November soybeans were down 14-1/4 cents at $14.11-1/2 a bushel.
Along with macroeconomic woes, estimates of the wheat crop in Russia, the world's top exporter, are rising. The European Union's crop monitoring service MARS raised its projections for Russia's 2022 wheat crop to a record-high 95.0 million tonnes, up from 88.8 million in June.
Russia’s Sovecon consultancy on Thursday raised its forecast for the crop to 100 million tonnes.
"The stronger dollar will be a burden to U.S. exports, especially at a time when a huge Russian wheat harvest is expected,” said Matt Ammermann, StoneX commodity risk manager.
"Corn and soybeans are also seeing weakness from forecasts of dry U.S. weather this week which will be positive for U.S. harvest work," Ammermann said.
Ahead of the U.S. Department of Agriculture's (USDA) weekly crop progress report due later on Monday, analysts surveyed by Reuters on average expected the government to show the corn harvest as 13% complete and the soybean harvest at 11% complete.
Traders have also begun adjusting positions ahead of the USDA's quarterly grain stocks reports due Friday.
Dealers continue to monitor developments in the Russia-Ukraine war after increased tension last week.
Some 211 ships with 4.7 million tonnes of agricultural products have left Ukraine so far under the deal to unblock Ukrainian sea ports, the Ukrainian infrastructure ministry said on Saturday. (Additional reporting by Michael Hogan in Hamburg, and Naveen Thukral in Singapore; editing by Chizu Nomiyama and Mark Potter)
© Copyright Thomson Reuters 2022. Click For Restrictions - http://about.reuters.com/fulllegal.asp