Chicago agricultural commodities close lower

Chicago Board of Trade (CBOT) grains futures close lower on Thursday with wheat futures sinking to a nearly three-month low, buffeted by huge world harvests that are adding to an oversupply of the grain.

The most active corn contract for March delivery fell 6 cents, or 1.72 percent, to 3.425 dollars per bushel. March wheat delivery dropped 7.25 cents, or 1.8 percent, to 3.955 dollars per bushel. January soybeans fell 2.5 cents, or 0.24 percent, to 10.2975 dollars per bushel.

Wheat prices for a sixth consecutive session as sellers piled into the market, driven in part by signs Australian farmers are harvesting a massive crop when world inventories of the grain already are record large.

The prospect of a big Australian harvest exacerbates worry among grain traders who have long been concerned about the competitiveness of U.S. wheat on the world market, causing some fund managers to liquidate bullish bets on the grain.

Heavy deliveries tend to reflect weakness in the cash market, which makes delivery against futures a better sale for commercial grain firms.

Corn followed wheat down, with lower-than-expected weekly U.S. export sales adding pressure. The U.S. Department of Agriculture reported export sales of U.S. corn in the latest week at 761,600 tonnes, below a range of trade expectations.

Soybeans sagged on expectations for a slowdown in export demand for U.S. supplies, along with generally favorable South American crop weather.

The USDA reported weekly U.S. soybean export sales at 1.4 million tonnes, at the high end of a range of trade estimates. Endit