Chicago agricultural commodities close lower on technical selling and ample supplies

Chicago Board of Trade (CBOT) grains futures settle lower Tuesday as selling picked up in agricultural markets amid generous crop supplies.

The most active corn contract for December delivery fell 5.75 cents, or 1.62 percent, to 3.49 dollars per bushel. December wheat delivery dropped 2 cents, or 0.48 percent, to 4.1425 dollars per bushel. January soybeans fell 18.5 cents, or 1.83 percent, to 9.9325 dollars per bushel.

Soybean prices led the declines, sliding back below the psychologically significant 10 dollars per bushel level thanks to lower prices for products made from the crop and speculation the government could boost its forecast for U.S. Production.

Lower prices for soybean meal and soyoil also pressured the soybean market. Prices for soyoil, which is used in cooking and fuel, have been leaking lower since notching a more than 2-year high last week, as worries subside somewhat over tight world supplies of vegetable oils like palm and soy. Prices for soybean meal, an animal feed ingredient, fell 2.1 percent on Tuesday.

Corn prices declined for a third consecutive session as the U.S. harvest advanced, with just one-quarter of the crop left to be collected, according to the government. Federal forecasters have predicted farmers will reap a record U.S. corn crop this year, which is expected to add to the largest global grain supplies ever this season.

Wheat futures fell on ample supplies and lackluster export demand. But the market had underlying support from the fact that commodity funds already hold a large net short position in CBOT wheat, leaving it vulnerable to bouts of short-covering. Endit