Chicago | Reuters — Chicago grain and soybean futures declined on Friday as the prospect of rain in drought-stricken Brazil eased crop concerns, while traders exited long positions heading into a shortened U.S. Thanksgiving trading week.
Soybeans and corn dipped more than one per cent while wheat fell 0.5 per cent.
The most-active soybean contract on the Chicago Board of Trade (CBOT) fell 20 cents to close at $13.40-1/4 per bushel (all figures US$). That was 4.2 per cent off the week’s high of $13.98-1/2, which was a 2-1/2-month high reached on Wednesday.
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Soybean prices increased after nearing a two-year low in mid-October amid Chinese demand and concerns about hot, dry weather hurting crops in northern and central Brazil.
Price-pressuring forecasts for Brazilian rains next week have eased concerns over how the weather in key planting areas could hurt production in the top exporting nation. Futures prices pulled back after reaching the August high on Wednesday.
“It’s all based on the prospect of rain,” said Dan Basse, president of Chicago-based consultancy AgResource. “There’s profit taking. A lot of traders are averting risk.”
The showers next week will briefly ease stress from heat and dryness in the northern 40 per cent of Brazil’s soybean area, Commodity Weather Group said. Northern Brazil is then expected to dry out again, the firm said.
Extremely dry weather is forcing farmers to give up on soy to plant cotton or another crop in Brazil, lobby groups and growers said.
Basse noted the tight presidential election in Argentina, a major grain and soy producer, added pressure on futures. Traders getting out of long positions before the U.S. Thanksgiving holiday also weighed on prices.
CBOT December soft red winter wheat settled down 2-3/4 cents at $5.50-3/4 per bushel.
Wheat prices were near September’s three-year low of $5.40 as Russia, wrapping up a second consecutive huge harvest, continues to export huge amounts of cheap grain.
CBOT December corn settled down 7-3/4 cents at $4.67 per bushel.
— Reporting for Reuters by Brendan O’Brien in Chicago; additional reporting by Peter Hobson in Canberra and Sybille de La Hamaide in Paris.
