Wheat fell after India, the world’s second-biggest grower, issued a tender to export the grain, signaling more supplies. Soybeans and corn slid as U.S. farmers increased sales of newly harvested crops.
India State Trading is seeking to export 120,000 metric tons of milling wheat from Mundra port during Nov. 24-Dec. 20, according to a notice on its website today. The country will consider lowering the minimum export price of the grain to reduce domestic stockpiles. Futures that reached a four-month high on Oct. 21 are trading near the biggest premium to corn since September 2010.
“Wheat prices rallied to a point where India wants to sell its surplus inventories,” Don Roose, the president of U.S. Commodities Inc. in West Des Moines, Iowa, said in a telephone interview. “We have reached a point where wheat is no longer competitive with corn in livestock rations.”
Wheat futures for delivery in December slid 0.7 percent to close at $6.965 a bushel on the Chicago Board of Trade, the first decline in three sessions.
Prices have fallen 10 percent this year as world production may rise 8.2 percent to a record 708.9 million metric tons.
Corn futures for delivery in December dropped 0.6 percent to $4.4025 a bushel in Chicago. The most-active contract has slumped 37 percent this year on forecasts for a record U.S. harvest.
Soybean futures for delivery in January fell less than 0.1 percent to $13.0375 a bushel.
Farmers gathered 63 percent of soybeans and 39 percent of the corn as of Oct. 20, below the five-year averages, the U.S. Department of Agriculture said this week. About 60 percent of corn was in good or excellent condition, up from 55 percent on Sept. 29, while soybeans improved to 57 percent with the best ratings from 53 percent, the government said.
“Farmers are increasing sales, and elevators are hedging it in the futures markets,” Roose said. Dry weather allowed for increased harvesting, he said.