Wheat hit by global risk aversion, profit taking

Close up of ripe wheat ears against beautiful sky with clouds. Selective focus.

U.S. wheat pulled further away from three-week highs on Thursday, as a vicious selloff in commodities and equities revived worries about global growth.

FUNDAMENTALS

* Chicago Board of Trade front-month wheat dropped 0.3 percent to $4.76-1/2 a bushel, having closed down 0.7 percent on Wednesday and pulling away from a three-week top of $4.84-1/4 a bushel.

* Front-month soybeans eased a touch to $8.78-3/4 a bushel following a 0.6 percent rise on Wednesday.

* Front-month corn shed 0.3 percent to $3.57 a bushel, having gained 0.4 percent in the previous session.

* Markets were ripe for a correction after a bullish U.S. Department of Agriculture supply report sent grain prices to multi-week peaks.

* China, the world’s largest soy buyer, imported 9.12 million tonnes of soybeans in December, up 23.4 percent from 7.39 million tonnes in November.

MARKET NEWS

* The Canadian dollar wallowed at a 12-year trough early on Thursday following another slide in oil prices, while the greenback retreated from a one-week high against a basket of major currencies on tumbling stocks.

* Crude oil fell in Asian trade on Thursday, with Brent marking another 12-year low amid gloom over a world awash with supply and concerns about global economic growth hitting equity markets.

* U.S. stocks sank on Wednesday, pushing the S&P 500 to close below 1,6900 for the first time since September as investors grew anxious about weak energy prices, U.S. corporate earnings and the global economy.

[reuters]

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