U.S. agricultural futures fall

By Xu Jing

CHICAGO, Oct. 28 (Xinhua) -- Chicago Board of Trade (CBOT) agricultural futures fell across the board for the second session in a row on Wednesday, led by corn.

The most active corn contract for December delivery fell 14.5 cents, or 3.49 percent, to close at 4.015 U.S. dollars per bushel. December wheat slipped 7 cents, or 1.14 percent, to settle at 6.0875 dollars per bushel. January soybean shed 21.75 cents, or 2.02 percent, to close at 10.5475 dollars per bushel.

Corn, soybean and wheat futures endured widespread fund selling and deep losses as a "risk off" theme circulates the world financial markets. Expanding cases of COVID-19, upcoming U.S. presidential election, and the inability of the U.S. House and the federal administration to pass new stimulus have also raised investor anxiety.

But as cash grain on basis and FOB offers are exceptionally strong and have not budged, it's the speculative selling from fund managers that has produced the selling pressure, Chicago-based research company AgResource said.

Grain futures corrections on fund liquidation usually last for 3-4 days, and a recovery effort should unfold afterwards, AgResource noted.

The U.S. Department of Agriculture (USDA) announced new sales of 120,000 metric tons of U.S. soybeans to an unknown buyer, 207,000 metric tons of U.S. corn to South Korea and 110,000 metric tons of U.S. soybeans to Egypt.

The weekly ethanol report of the Energy Information Administration showed a modest gain in production at 276 million gallons, which would consume some 95.3 million bushels of corn. U.S. ethanol production last week was 268 million gallons with U.S. ethanol stocks falling slightly to 823 million gallons. For the marketing year in corn, the grind is on pace to consume 4,980 million bushels of corn, slightly less than the USDA forecast of 5,050 million bushels.

A daily chance of rain will exist across North and Central Brazil for the next two weeks. The drier forecast has returned for South Brazil and Argentina.

Chinese pricing is evident in soybeans on a scale-down basis, and U.S. farmer selling has ended on the decline. AgResource predicted that December corn should hold 3.95-4.00 dollars support, November soybeans 10.40-10.50 dollars and December wheat at 5.90-6.00 dollars.

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