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U.S. wheat futures extend losses after USDA raises supply outlook

Published 02/11/2015, 06:51 AM
© Reuters. U.S. wheat futures under pressure after USDA raises supply outlook
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Investing.com - U.S. wheat futures extended losses from the previous session on Wednesday, after the U.S. Department of Agriculture raised its outlook for domestic and global supplies.

On the Chicago Mercantile Exchange, US wheat for March delivery declined 3.83 cents, or 0.73%, to trade at $5.1738 a bushel during U.S. morning hours.

A day earlier, US wheat for March delivery lost 8.0 cents, or 1.51%, to close at $5.2160 a bushel.

The USDA forecast domestic reserves in the season ending in May at 692 million bushels, up from last month’s forecast of 687 million, citing sluggish export demand.

The agency cut its U.S. wheat export projection to 900 million bushels, down 2.7% from January's estimate, citing increased competition from the European Union.

According to the agency, global ending wheat inventories will total 197.85 million tons, above expectations and the most since the 2009-10 marketing year.

Wheat has been under heavy selling pressure in recent weeks amid ample global supplies and indications of reduced demand for U.S. wheat.

Meanwhile, US corn for March delivery dipped 1.27 cents, or 0.33%, to trade at $3.8613 a bushel. On Tuesday, US corn for March delivery slumped 3.2 cents, or 0.83%, to end at $3.8800.

The USDA projected global ending corn stockpiles at 189.6 million metric tons for the 2014-15 season, up from a previous forecast of 189.15 million tons.

The agency also said that U.S. corn inventories at the end of the 2014-15 season in August will total 1.827 billion bushels, down 50 million bushels from an estimate in January, amid increased demand from ethanol producers.

Elsewhere on the Chicago Board of Trade, US soybeans for March delivery shed 1.27 cents, or 0.13%, to trade at $9.6813 a bushel.

US soybeans for March delivery dropped 9.4 cents, or 0.97%, to settle at $9.6900 a bushel.

The USDA pegged domestic soybean stocks at the end of the 2014-15 season on August 31 at 385 million bushels, down from 410 million bushels a month ago, due to rising demand on both the domestic and export fronts.

The agency said soybean exports for the current crop year will hit 1.79 billion bushels, up 20 million bushels from January's forecast.

According to the USDA, global soybean ending stocks were expected to total 89.26 million tons, down from 90.78 million tons estimated last month.

Corn is the biggest U.S. crop, followed by soybeans, government figures show. Wheat was fourth, behind hay.

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