Wheat falls, extends two-day losses to nearly 2 pct

Wheat_harvest

U.S. wheat dropped for a second session on Thursday to extend two-day losses to nearly 2 percent, as Russia said it would consider cutting its export tax on the grain, increasing competition for U.S. supplies.

FUNDAMENTALS

* Chicago Board of Trade front-month wheat fell 0.16 percent to $4.75-3/4 a bushel, having closed down 1.7 percent on Wednesday.

* Front-month soybeans were little changed at $8.82-1/2 a bushel, after firming 0.74 percent on Wednesday.

* Front-month corn was steady at $3.69-1/4 a bushel, having closed little changed during the previous session.

* Russia will consider removing or cutting an export tax on wheat and imposing one on barley and corn exports, First Deputy Agriculture Minister Evgenii Gromyko said on Wednesday.

* Drought has caused irrecoverable corn crop losses in some areas of Argentina despite the El Nino weather phenomenon which usually triggers heavy rains in South America, an analyst at the country’s main grains exchange said.

MARKET NEWS

* The U.S. dollar turned mixed on Thursday after the Federal Reserve offered little in the way of surprises, in contrast to New Zealand’s central bank, which flung open the doors to a cut in rates and clipped the kiwi in the process.

* U.S. crude futures dropped more than 1 percent in Asian trading on Thursday, paring gains of nearly 3 percent made in the previous session after Russia held out the possibility of cooperating with OPEC to control global oversupply.

* Wall Street dropped sharply on Wednesday after the Fed frustrated stock investors hoping for a strong sign it might scale back future interest rate hikes because of recent financial and economic turmoil.

[reuters]

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