U.S. grains fall on concerns that global crop production could outstrip demand

[Road through wheat field]
Toltek/iStock via Getty Images

U.S. grain futures fell broadly Wednesday as the U.S. seems to make slow progress toward a trade deal with China and Chinese buyers are said to be procuring their imports elsewhere, with soybeans seen as the most vulnerable.

"China's absence as a U.S. soybean buyer is becoming worrisome," analysts at AgResource said in a note, adding that Russia's large wheat harvest has weighed down prices and Mexican and South American corn tender demand has slowed.

AgResource doubts that grain rallies can be sustained and said "producers should be using any upward price push to advance cash sales."

U.S. ethanol stockpiles declined last week to their lowest in nearly a year, highlighting concerns about demand for corn, with the Energy Information Administration reporting ethanol inventories at the lowest since November last year at 22.55M barrels for the week ending August 20.

On Wednesday, CBOT wheat (W_1:COM [https://seekingalpha.com/symbol/W_1:COM]) for December delivery closed -1.4% to $5.24 1/4 per bushel, corn for December delivery ended -0.9% to $4.06 per bushel, and soybeans for November delivery finished -0.2% to $10.47 1/2 per bushel.

ETFs: (NYSEARCA:WEAT [https://seekingalpha.com/symbol/WEAT]), (NYSEARCA:CORN [https://seekingalpha.com/symbol/CORN]), (NYSEARCA:SOYB [https://seekingalpha.com/symbol/SOYB]), (DBA [https://seekingalpha.com/symbol/DBA]), (MOO [https://seekingalpha.com/symbol/MOO])

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