Newspaper article THE JOURNAL RECORD

Wheat, Soybean Futures Prices Fall on Good Weather Forecasts

Newspaper article THE JOURNAL RECORD

Wheat, Soybean Futures Prices Fall on Good Weather Forecasts

Article excerpt

Wheat and soybean futures prices sank Wednesday on the Chicago Board of Trade as forecasts for good weather in major growing areas reinforced expectations farmers this year will produce significantly more crops to relieve tight supplies.

On other commodity markets, energy futures recovered from sharp losses amid surprisingly large increases last week in crude and gasoline inventories.

Gold futures also fell on reports Germany plans to sell one- third of its gold reserves to fill a budget shortfall. The Agriculture Department earlier this week predicted American farmers could produce the second-largest corn crop on record and said tight wheat and soybean inventories will ease significantly. Soybean futures were hurt Wednesday by forecasts calling for warmer temperatures to arrive by week's end in the Midwest, which could help seed germination and planting of the spring crops. "There was panic in traders' eyes today," said analyst David Armstrong at Chicago Corp. "With the USDA's first forecast calling for large crops, the market's attention has shifted mostly toward what supplies are going to look like farther down the road." Soybean futures also were pressured by expectations for a significant decline in export sales. For the first time this marketing year, U.S. soybean exports could fall below 200,000 bushels amid cheaper competing products from Argentina and Brazil, analysts said. The amount of soybeans left over before the next harvest is expected to fall to 125 million bushels. But that number could be revised upward if domestic and export demand continues to decline sharply. Wheat futures were pressured by beneficial rain in the Plains states that could boost yields for the upcoming harvest. Prices also were pressured by reports that Tunisia had bought 125,000 tons of wheat from other countries, indicating a slowing of demand for American wheat. …

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