Dec. 16 (Bloomberg) -- Wheat futures in Chicago extended a slump to the lowest since June 2012 as forecasts showed reduced risk of frost damage to crops in the U.S. and the Black Sea region. Corn fell, while soybeans rose.
Higher temperatures mean “minimal” threat in U.S. wheat areas, while a lack of below-zero Fahrenheit (-18 degrees Celsius) eased crop concerns in the former Soviet Union, Commodity Weather Group said in a report.
“There is little incentive for end-users to aggressively extend coverage with prices trending lower and world supplies at ample levels,” Shawn McCambridge, the senior grain analyst for Jefferies Bache LLC in Chicago, said in a report. “Unless the pace of demand improves, the path of least resistance will remain lower.”
Wheat futures for March delivery dropped 1.1 percent to close at $6.2175 a bushel at 1:15 p.m. on the Chicago Board of Trade. Earlier, the price touched $6.21, the lowest for a most- active contract since June 12, 2012. The grain tumbled 20 percent this year amid forecasts for record-high global output.
Corn futures for March delivery fell 0.5 percent to $4.2325 a bushel on the CBOT. Earlier, the price touched $4.205, the lowest since Dec. 2, amid concern that China will cancel more orders of the grain from the U.S., the top producer.
On Dec. 6, China rejected 180,000 tons containing a genetically modified variety not yet approved.
“The U.S. markets remain under pressure, especially after the various cancellations of corn imports,” Agritel, a Paris- based farm adviser, said in a report.
In Chicago, soybean prices rose on forecasts for hot, dry weather in southern Brazil and Argentina this week.
Soybean futures for March delivery climbed 0.9 percent to $13.2525 a bushel, capping the first two-day gain since Nov. 25. In the previous two weeks, the price dropped 1.7 percent.
Brazil is the top exporter, and Argentina is the biggest shipper of livestock feed and cooking oil made from soybeans.
--With assistance from Ranjeetha Pakiam in Kuala Lumpur. Editors: Thomas Galatola, Patrick McKiernan