Wheat futures fell to a one-week low after Egypt, the world’s biggest importer last year, canceled a tender to buy the grain for the first time in a month. Corn declined, and soybeans rose.
Mamdouh Abdel Fattah, the vice chairman of Egypt’s General Authority for Supply Commodities, said wheat offers were too high for at least 60,000 metric tons. Wheat prices gained 3.7 percent in September and two days ago reached a 15-week high. Use in U.S. livestock rations may ebb after the premium to corn rose this week to the highest since September 2010.
“The rally has run too high, and we have run out of new buyers,” Mark Schultz, the chief analyst for Northstar Commodity Investment Co. in Minneapolis, said in a telephone interview. “Livestock producers are going to quit feeding wheat.”
On the Chicago Board of Trade, wheat futures for December delivery fell 0.7 percent to close at $6.855 a bushel at 1:15 p.m. The price fell for the third straight day, the longest slump in in five weeks. On Oct. 8, the grain touched $6.9975, the highest for a most-active contract since June 24. The U.S. is the biggest exporter.
Corn prices fell after cool temperatures in July and an extended growing season boosted yields, Schultz said.
Yields are as much as 20 bushels higher than farmers expected, increasing the supply available to ethanol processors and livestock producers, Karl Setzer, a market analyst at MaxYield Cooperative in West Bend, Iowa, said today in a report.
Corn futures for delivery in December fell 1.2 percent to $4.3825 a bushel. The price has tumbled 37 percent this year on the outlook for the biggest U.S. crop ever.
Soybean futures for November delivery rose less than 0.1 percent to $12.88 a bushel. The price has dropped 8.6 percent this year.
Corn is the biggest U.S. crop, followed by soybeans, hay and wheat, government data show.