Chicago/Reuters – U.S. soybean futures fell on Thursday as improving weather in major Midwest growing areas increased expectations of ample production, traders said.
Wheat futures firmed on a round of bargain buying and technical support, snapping a seven session losing streak for the front-month contract. Corn also edged higher, with the gains in wheat sparking a late session turnaround.
But corn’s strength was muted as the weather allayed fears about crop development. Much of the U.S. crop was progressing through its key pollination phase with ample moisture and low heat stress.
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“The crop may be starting to look a little bit better,” said Northstar Commodity Investment Co chief analyst Mark Schultz. “These are not demand-driven markets. It is a weather market.”
Chicago Board of Trade August soybean futures ended down 10-3/4 cents at $10.10 a bushel. New-crop November was 15 cents lower at $9.80-1/2.
“This is the time of year that the soybeans generally go from looking ‘scraggly’ to shading the rows and perking up as a crop, and the weather certainly seems to be cooperating,” Charlie Sernatinger, global head of grain futures at ED&F Man Capital said in a note to clients. “For the next ten days at least, we have mostly sunny skies and warm, if not hot, temperatures.”
Falling soymeal futures added more pressure to the soybean market. Traders said weak export demand and competition from additional feeding sources keyed the selloff in soymeal.
CBOT September corn ended 1/2 cent higher at $4.03-1/4 a bushel after hitting a three-week low. New-crop December corn gained 1/4 cent to $4.13-3/4.
CBOT September wheat settled up 4-3/4 cents at $5.21-1/2 a bushel.
– Mark Weinraub reports on grain markets for Reuters from Chicago. Additional reporting by Julie Ingwersen in Chicago, Naveen Thukral in Singapore and Sybille de La Hamaide in Paris.
