Chicago | Reuters — U.S. grain and soybean futures ended lower on Wednesday as favourable rains reached crop belts in South America and the U.S., analysts said.
Traders are watching global weather after drought has hurt crop production in Argentina and the U.S. Plains and slowed soybean plantings in Brazil. South American conditions are particularly important for agricultural prices, analysts said, as large harvests in Brazil have reduced export demand for U.S. corn and soybeans on the global market.
Over the weekend, rains arrived in Argentina in time to benefit late-planted wheat crops and should also help farmers to continue or start soybean plantings.
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“Weather is in focus,” said Terry Reilly, senior agricultural strategist for Marex. “Brazil’s centre-west may see rain during the second week of the forecast and Argentina could see scattered showers over the next seven to 10 days.”
The most-active corn contract on the Chicago Board of Trade (CBOT) settled down four cents at $4.80 a bushel and touched its lowest price since Oct. 2 at $4.76-3/4 (all figures US$).
Soybeans dropped seven cents to $12.88-1/4 a bushel and hit their lowest price since Oct. 13 at $12.78.
CBOT soymeal also weakened, with December futures ending $5 lower at $429.20 per ton as the market retreated from a contract high of $439.4 per ton.
CBOT wheat settled 12 cents lower at $5.68-1/2 a bushel and set its lowest price since Oct. 12 at $5.67. K.C. December hard red winter wheat slid 14 cents to close at $6.49 a bushel and set a contract low of $6.48-1/2.
Rains in the U.S. Plains benefited recently planted hard red winter wheat, used to make bread, after farmers have struggled with drought.
Showers will delay U.S. Midwest corn and soy harvesting for a few days, though farmers made quick progress bringing in crops from their fields early this week, analysts said.
On Thursday, traders will review weekly U.S. grain and soybean export sales data.
— Reporting for Reuters by Tom Polansek in Chicago; additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
