Chicago | Reuters—Chicago Board of Trade soybeans and corn futures turned lower on Friday, with both also notching a third weekly loss, as farmers kept clearing out their grain bins ahead of a U.S. harvest that is forecast to see massive yields, traders said.
Wheat futures firmed as problems with the French and German wheat crop, plagued by excess harvest-time rain, supported prices.
Most-active CBOT wheat Wv1 settled up 1-3/4 cents to $5.30 a bushel, while corn Cv1 ended down 4-1/2 cents at $3.92-1/2 a bushel.
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Meanwhile, most-active soybean futures Sv1 fell down 11-1/2 cents to finish at $9.57 a bushel – having dipped at one point to $9.55 a bushel, the lowest since Sept. 2, 2020.
U.S. wheat futures have continued to face pressure from a strong Black Sea wheat crop. However, the French soft wheat crop, which is expected to be the smallest since the 1980s, and a declining German crop have provided a floor under prices.
All three crops were trading close to their lowest since 2020 against a backdrop of large U.S. supplies and stiff competition from Brazil and Russia to capture limited demand.
Farmers have been selling off huge volumes of old crop corn and soybeans to generate much-needed cash flow ahead of the fall, when property taxes, crop insurance and other bills come due, traders said. Meanwhile, funds continue to hold large short positions on U.S. commodities, leaving the market open to short covering.
“It’s a perfect storm for funds,” Darin Fessler, trader at Lakefront Futures and Options, said. “They’re thinking about getting out of their massive shorts while producers are selling.”
Renewed concern about China’s economy and weak Chinese demand for U.S. soy also weighed over U.S. soy futures, traders said.
“The Chinese economy isn’t exactly hunky dory,” Fessler said. “Demand hasn’t been great, and it’s putting further pressure on U.S. prices even though U.S. beans are cheap.”
—Reporting for Reuters by Heather Schlitz and Renee Hickman in Chicago. Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
