Chicago | Reuters — Benchmark U.S. corn futures rose on Wednesday, hovering near one-year highs as traders continued to adjust to a tighter supply outlook projected last week by the U.S. Department of Agriculture (USDA) and fretted about Argentine crop weather, analysts said.
Soybean futures fell on profit-taking a day after rising to a three-month high and after monthly U.S. soy crush data underscored strong production of soymeal. Wheat futures closed modestly higher after a choppy session.
Chicago Board of Trade March corn settled up 4-3/4 cents at $4.78-3/4 a bushel, hovering below a one-year top set on Tuesday at $4.79-3/4.
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March CBOT soybeans ended down 4-3/4 cents at $10.40-3/4 per bushel and March wheat finished 3/4 cent higher at $5.47 a bushel.
Corn futures held firm as traders monitored forecasts for crop areas of Argentina that have struggled with hot and dry weather. Some forecasts called for weekend rains that should offer a measure of relief, but dry conditions could rebuild later this month, the Commodity Weather Group said in a client note.
“We are really watching Argentine weather very closely… The uncertainty there is continuing to put a little pressure to the upside (on corn futures),” said Don Roose, president of Iowa-based U.S. Commodities. Argentina is the world’s No. 3 corn producer and the top exporter of soy products.
Meanwhile, the futures market is still digesting last week’s USDA reports in which the government lowered estimates of the 2024 U.S. corn and soybean crops and tightened its forecasts of ending stocks for both crops.
“We are continuing to adjust to the report and trying to push (prices) high enough to where the producer sells enough or demand slows down,” Roose said.
However, he noted, both corn and soybean futures appeared to be near technical resistance levels, with corn and soybeans staying below the multi-month highs set on Tuesday.
CBOT soymeal futures sagged, pressured by reminders of an active U.S. soybean crush pace that has generated ample supplies of the feed ingredient. The National Oilseed Processors Association reported that its members crushed a record-high 206.6 million bushels of soybeans in December, above an average of trade expectations and up 5.8% from the year-ago crush.
Soybean futures were also under pressure from the start of what is widely forecast to be a record soy harvest in Brazil.
Wheat prices firmed but rallies were capped by a backdrop of strong global competition for tepid export demand.
