Chicago/Reuters – U.S. wheat futures firmed on Friday on better-than-expected export data and short-covering at year’s end, analysts said, but the market was poised for an annual decline of about 13 per cent.
Corn was set to finish the year down about 2 percent after the biggest-ever U.S. harvest boosted stockpiles.
Both corn and wheat are heading for their fourth straight annual slide. As of 12:22 p.m. CST (1822 GMT), Chicago Board of Trade March wheat was up two cents at $4.06-3/4 per bushel.
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March corn was up 1/2 cent at $3.50-1/4 a bushel. March soybeans were down 1/2 cent at $10.12-1/4 a bushel.
Wheat rose on the final trading day of the year, lifted by a setback in the dollar, which in theory makes U.S. grains more competitive, and strong weekly exports.
The U.S. Department of Agriculture reported export sales of old-crop wheat in the latest week at 568,000 tonnes, above a range of trade expectations for 200,000 to 500,000 tonnes.
“Wheat is biggest gainer this week. U.S. sales were at the upper end of estimates,” said Ed Duggan, senior risk manager at Top Third Ag Marketing in Chicago. Duggan also noted cold temperatures expected in the U.S. winter wheat belt next month that could threaten dormant crops.
Snow cover was absent as of Friday in Kansas and Oklahoma, the top two winter wheat states. However, large U.S. and global grain supplies continue to hang over the wheat and corn markets, limiting rallies.
The USDA and the International Grains Council have estimated record world wheat production in 2016/17. CBOT soybeans were mostly lower on the day but on track to rise about 15 per cent for 2016, their first yearly climb since 2012.
The advance reflects robust U.S. soy exports and wider strength in oilseed markets that have countered pressure from big harvests and a rising dollar.
“The U.S. have responded spectacularly well to export demand in soybeans and export forecasts are going to have to be revised up,” Gautier Le Molgat of consultancy Agritel said. “We could see prices coming under pressure, however, once South American soybeans become available and if production prospects there are confirmed.”
Soybeans also have drawn support from other oilseed markets, including Malaysian palm oil futures, which rose 25 percent over 2016 to notch up their biggest annual gain since 2010.
