Wheat Soybeans and corn futures august 14 2012 Stock Market Today Shares, gold , mortgage rates

Wheat Soybeans and corn futures august 14 2012 : US wheat futures fell for a third session on Tuesday, erasing early strength and setting a one-month low after Egypt bought Russian and Ukrainian wheat at an international tender and sent a signal that US grain was overpriced, traders said. Soybeans and corn pared early gains as wheat slipped and were nearly unchanged in choppy trading.

At the Chicago Board of Trade as of 11:25 a.m. CDT (1625 GMT), September wheat was down 11 cents, or 1.3 percent, at $8.45-3/4 per bushel. Benchmark December corn was up 1 cent at $7.93-1/4 per bushel and November soybeans were down 2-1/2 cents at $15.98-1/4 a bushel.

Front-month CBOT wheat broke chart support at $8.50 and dipped to $8.41, the lowest spot price since July 13. Wheat futures fell after Egypt, the world's largest wheat buyer, bought 120,000 tonnes of wheat from Russia and Ukraine on Tuesday, three days after buying 120,000 tonnes of Russian wheat at its previous tender.

The purchases eased concerns that drought might spur Russia to restrict grain exports. Russia's wheat harvest may fall by 20 percent in the 2012/13 season to around 45.5 million tonnes, largely because of a drought that has parched fields in leading growing regions.

But the head of Russia's Grain Union last week said Russia will have enough grain for export and domestic consumption at least until the end of 2012.

"The government does indeed have exportable supplies, and Russia is a competitor. I don't think the trade was prepared for that," said Mike Zuzolo of Global Commodity Analytics in Lafayette, Indiana. "So wheat is the leader to the downside."

The Egyptian purchases also indicated that US wheat was not competitive on the world market. "It just points out that maybe we are too pricey at the moment," said Jack Scoville, a broker and vice president for the Price Futures Group in Chicago.

"We are figuring we have to lower our prices," he said. "Plus, the Canadian crops are coming in, as well as our spring wheat crops. People seem to be more laid-back about the overall supply situation."

US CORN, SOY RATINGS STABILIZE
Improved weather in the US Midwest and stabilizing US crop ratings kept a lid on the soybean and corn markets.

Soybeans were flat despite a monthly industry report on the US soybean crush that came in above trade expectations, indicating higher-than-expected domestic soy usage. The National Oilseed Processors Association reported the monthly US soybean crush for July at 137.380 million bushels, above an average of trade estimates for 132.5 million.

Weather forecasts for the Midwest, which produces 75 percent of the crops, called for cooler temperatures and scattered rains, which could improve yield prospects for late-planted soybeans.

"While these rains have been too light to end the drought in most of the central and western Midwest, northern Delta, and central Plains, they have significantly slowed declines in crop condition ratings for both corn and soybeans," said Don Keeney, senior agricultural meteorologist for MDA EarthSat Weather/CropCast.

The US Department of Agriculture late Monday said 30 percent of the US soybean crop was rated in good to excellent condition, up 1 percentage point from the previous week.

Weekly corn ratings were unchanged, with 23 percent of the crop rated good to excellent, breaking a string of nine straight weeks where condition ratings dropped due to the scorching temperatures and dry soils. Still, ratings for both remained the lowest since 1988.

Grain markets have surged since June as the worst drought in half a century in the United States has withered corn and soy crops, and supply concerns remain intense despite a pullback in prices since Friday when operators decided to book profits after closely watched US government crop estimates.

CBOT December corn has fallen nearly 7 percent off its all-time high of $8.49 a bushel set on Friday.

The G20 group of countries could hold an emergency meeting next month depending on the gravity of the food price situation, France said on Monday, as it seeks to put into practice pledges made last year to curb volatility in food markets.

Source ; Reuters

For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today

For the latest updates PRESS CTR + D or visit Stock Market news Today

Commodity