Corn and Wheat Slump in Chicago

Before today's US estimates for global agricultural supply and demand, corn and wheat futures have already dropped in Chicago. The estimates, at the end, may show increasing grain stockpiles.

For the July delivery, corn has tripped from 1.3 percent to $3.655 a bushel; wheat knocked down from 0.4 percent to $4.91 a bushel; whereas, soybeans have plunged 0.5 percent to $9.56 a bushel.

Agritel, a Paris-based Farm Adviser quoted, "Some precautionary selling has become apparent ahead of the USDA report this afternoon, which should confirm the difficult fundamentals".

In Paris, the milling wheat traded for NYSE Liffe, sunk from 0.9 percent to 139.25 Euros.

With 81% of corn sown by the US farmers compared to the 46% sown last year, the farmers are on a near-record pace. Also, before the next year's harvest, Global soybean stockpiles may be 66.97 million tons.

In China, the imports may reach to a level record of 6 million tons by June, as compared to 5 million in May, this year. They are the biggest market of soybeans in the world. On the other hand, at an average price of 1,870 Yuan, China has sold 85 percent of the 574,600 tons of corn.

Most of the trade deals are waiting for the estimates to be released, yet it is evident that the corn and wheat have declined to a great deal.