Chicago | Reuters—Chicago wheat traded both sides of unchanged on Friday as the U.S. dollar showed some signs of weakness and the market continued to assess lower-than-expected crop ratings, according to analysts, but weather in growing regions was favorable.
Soybeans and corn ticked lower, curbed by expectations of ample supplies and beneficial weather, and soybeans faced additional pressure from uncertainty over biofuel demand as the U.S. government considers waivers for oil refiners.
The most active wheat contract on the Chicago Board of Trade (CBOT) Wv1 settled flat at $5.34 a bushel. Corn Cv1 dropped 3 cents to $4.44 a bushel.
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U.S. grains: Wheat futures rise on supply snags in top-exporter Russia
U.S. wheat futures closed higher on Thursday on concerns over the limited availability of supplies for export in Russia, analysts said.
CBOT soybeans Sv1 fell 10 cents to $10.41-3/4 a bushel.
In the U.S., winter wheat conditions showed an unexpected decline last week, and the dollar was mixed on Friday as investors factored in the likelihood of trade tariffs remaining in some form, even as U.S. President Donald Trump faces a court battle over his authority to impose them.
A weaker dollar makes U.S. exports less expensive and more competitive to holders of other currencies.
The currency of major wheat exporter Russia meanwhile hit a two-year high on Thursday, noted Mike Zuzolo, president of Global Commodity Analytics.
Meanwhile, regular showers have helped most corn and soybean crops get off to a good start to their growing season, analysts said. Rain has also improved moisture in wheat-growing areas, according to weather forecaster Vaisala.
“In corn and beans, there’s probably more a traditional seasonal market,” said Zuzolo.
With expectations rising for Brazil’s upcoming second corn crop, the corn market found little support in large export sales reported on Thursday by the U.S. Department of Agriculture.
Zuzolo noted that soybean oil was pressured by the ongoing uncertainty in biofuel policy.
The soybean market was also assessing a Reuters report that the White House is considering a plan to clear a record backlog of requests from small refineries for exemptions from U.S. biofuel laws.
—Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore
