Chicago wheat fell sharply, soybeans edged up and corn slightly decreased on Wednesday, as negative outside market forces after Tuesday’s release from the Federal Reserve Bank continued to hamper commodities trading.
The most active corn contract for May delivery declined 1.5 cents, or 0.23 percent, to close at 6.5675 U.S. dollars per bushel. May wheat sharply fell 18.75 cents, or 2.85 percent, to settle at 6.3925 dollars per bushel. May soybeans edged up 2.75 cents, or 0.19 percent, to close at 14.195 dollars per bushel.
Market analysts said that agricultural commodities faced an overwhelming negative outside market atmosphere Wednesday, as the metals, energy and equities markets all suffered heavy losses.
Tuesday’s revelation from the Federal Open Market Committee March meeting minutes that the Fed was unlikely to institute further quantitative easing policies inspired Wednesday’s mass declines and sent the dollar up, weakening basic conditions for agricultural commodities.
Wheat was hit hardest by the outside market negativity, May wheat losing nearly half of its gains made last week.
In addition to outside market forces, wheat also saw significant pressure from weather influence Wednesday. Current forecasts calling for rain in Western Europe would help the European crop that has previously suffered from marked dryness, while no forecasted freezing weather in the United States could raise questions on crop output.
Corn did not suffer as badly as wheat Wednesday, primarily due to ideas of limited producer selling and high cash basis levels.
Soybeans even managed to end the day slightly up, trading driven by desires to keep prices high to encourage more U.S. planting, which was down according to the March U.S. Department of Agriculture planted acreage report.