World stocks fell to near 2-1/2-year lows on Monday as a fresh pounding for China's markets left Asia at a four-year trough and sent commodity markets sprawling again. Crude oil tumbled about 5 percent to 12-year lows. Grain traders were squaring positions in the run-up to widely followed US Department of Agriculture (USDA) reports, which are expected to show cuts in corn use, ample global grain supplies and the lowest US winter wheat plantings in years.
"(Tuesday's) reports are the overall theme of trade today," said Rich Nelson, chief strategist with consultancy Allendale Inc. A USDA announcement of 368,000 tonnes of US soyabean export sales and 152,400 tonnes of corn sales lifted prices earlier in the day, but that support soon faded. "The trade realises that we're still going to eke out some sales here and there. But as a whole, nobody is thinking this is the beginning of a resurgence of export sales," Nelson said.
Chicago Board of Trade March wheat fell 9-1/2 cents, or 2 percent, to $4.69 a bushel, breaking a four-session streak of gains. The contract earlier hit its highest since December 22 at $4.81-1/2. CBOT March corn fell 5-1/4 cents, or 1.5 percent, to $3.50 a bushel and March soyabeans shed 4 cents, or 0.5 percent, to $8.61-1/4 a bushel. Grain markets remain weighed down by ample global supplies, despite robust Chinese demand and growing import needs in Africa and India due to El Nino-related weather effects. Forecasts for milder weather in the central and southern US Plains wheat belt later this week following a weekend cold snap pressured prices for the grain. Wheat markets are also watching developments in Egypt, the world's biggest wheat buyer, where payment delays and moves to tighten import rules have created uncertainty for exporters.