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U.S. wheat slumps to 3-week low, soybeans fall from 6-week top

Published 02/25/2015, 06:50 AM
© Reuters.  U.S. wheat futures hit 3-week low on ample global supplies

Investing.com - U.S. wheat futures declined to the lowest level in three weeks on Wednesday, amid ample global supplies and indications of reduced demand for U.S. wheat.

On the Chicago Mercantile Exchange, US wheat for May delivery fell to $5.0040 a bushel, a level not seen since February 3, before recovering to trade at $5.0463 during U.S. morning hours, up 1.48 cents, or 0.29%.

A day earlier, wheat eased down 0.2 cents, or 0.05%, to settle at $5.0360.

Meanwhile, US corn for May delivery inched up 0.47 cents, or 0.12%, to trade at $3.8588 a bushel.

US corn for May delivery dropped 1.2 cents, or 0.32%, on Tuesday to end at $3.8540 as losses in wheat weighed on prices.

Wheat and corn prices are linked because both can be used as animal feed.

Elsewhere on the Chicago Board of Trade, US soybeans for May delivery shed 3.02 cents, or 0.3%, to trade at $10.1538 a bushel.

The May soybean contract rallied to $10.3200 on Tuesday, the most since January 12, before closing at $10.1860, up 17.2 cents, or 1.72%, as concerns over a disruption to supplies from Brazil boosted prices.

A strike by Brazilian truck drivers protesting high fuel prices continued for the seventh day on Tuesday, threatening to hold up grains exports at the nation's second-largest grain hub in Paranagua.

However, Brazilian authorities imposed fines on truckers for blocking the roads on Wednesday, indicating the strike may be ending.

Brazil is a major soybean exporter and competes with the U.S. for business on the global market. A disruption to supplies there could mean increased demand for U.S. supplies.

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

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