Wheat Prices Toasted on Supply Boost

U.S. wheat futures sank on Wednesday, weighed down by signs of abundant supplies and dim prospects for U.S. exports, traders said.

The front-month K.C. hard red winter wheat contract shed 2.8 percent and hit its lowest in more than eight years, while the most actively traded Chicago Board of Trade December soft red winter wheat contract flirted with contract lows.

The drop in wheat weighed on corn prices, which hit their lowest since June 22, while soybeans retreated on technical selling after firming early in the session.

A firm dollar, which makes U.S. commodities relatively more expensive to overseas buyers, cast a bearish tone across the sector. Dollar strength tends to hit wheat the hardest, as export deals for the grain are priced in local currencies.

The front-month K.C. hard red winter wheat contract was down 11 cents at $4.47-1/2 a bushel at 10:47 a.m. CDT (1547 GMT). Prices bottomed out at $4.45-1/2, their lowest since April 4, 2007.

CBOT reported on Monday evening that were 184 new deliveries against the expiring K.C. September hard red winter wheat contract, reflecting the abundant supplies on the cash market.

CBOT December soft red winter wheat was down 8-3/4 cents at $4.77-1/2 a bushel. Prices matched a contract low of $4.76-1/2 earlier in the session.

CBOT December corn was 3 cents lower at $3.66 a bushel while CBOT November soybeans dropped 7-1/2 cents to $8.66-1/2 a bushel.

The soybean contract hit resistance at its 10-day moving average.

Some private forecasts for bumper harvests of both crops in the United States added pressure to corn and soybeans.