Wheat down but strong demand limits decline

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    SINGAPORE- Chicago wheat futures slid on Wednesday, taking a breather from a strong run-up in the last session, although the US Department of Agriculture’s (USDA) forecast for strong demand put a floor under the market.

    Soybeans eased after four straight sessions of gains, while corn dipped for a second consecutive day.

    “The USDA increased overall global demand for soybeans, corn and wheat,” said Ole Houe, director of advisory services at brokerage IKON Commodities in Sydney.

    “But the biggest surprise was that they increased China’s demand for wheat imports.”

    The USDA in its World Agricultural Supply and Demand Estimates report forecast China’s wheat imports in 2020/21 to jump to 10.5 million tons, almost double from a year ago.

    The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.7 percent to $6.52-1/4 a bushel, after rising 1.5 percent on Tuesday.

    Soybeans were down 0.4 percent to $14.33-1/2 a bushel, after closing up 0.4 percent in the previous session, and corn lost 0.9 percent to $5.41 a bushel, after falling 0.2 percent on Tuesday. – Reuters