Wheat Futures Prices Drop
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Wheat futures prices dropped sharply Wednesday as they fell through technical resistance levels, triggering additional computer-activated selling on the Chicago Board of Trade.
The sell-off was also fueled by some speculative liquidation, said Bob Lekberg, an analyst in Chicago for Shearson Lehman Bros.
“The same people who were buying it last week are the same people who are coughing it up this week,” Lekberg said.
Soybean prices were pressured by word that Brazil planned to export large quantities of soybean oil to the United States, said Lekberg, who added that Brazilian officials would not confirm the report.
The nearby corn contract edged ahead on concern that supplies at the major terminals in Chicago and Toledo were tight. Deferred or newer crop contracts were weighed down by the ideal spring planting weather.
“The feeling is the farmers will be planting up a storm in the next week so why buy,” Lekberg said.
The outside markets were sluggish and inspired little confidence in the grain pits, Lekberg said.
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