Chicago | Reuters—Chicago Board of Trade corn futures firmed on Friday on support from strong international demand, concerns over disease in the U.S. Midwest and technical support, analysts said.
Soybeans ended higher on technical trading, though a lack of Chinese demand for U.S. supplies hung over the oilseed market. Wheat headed higher under technical support.
Traders were adjusting positions at the end of the month and before a long weekend in the United States, where financial markets will be closed on Monday for the Labor Day holiday.
Read Also
Feed Grains Weekly: Price likely to keep stepping back
As the harvest in southern Alberta presses on, a broker said that is one of the factors pulling feed prices lower in the region. Darcy Haley, vice-president of Ag Value Brokers in Lethbridge, added that lower cattle numbers in feedlots, plentiful amounts of grass for cattle to graze and a lacklustre export market also weighed on feed prices.
The most active corn contract Cv1 ended 10-1/4 cents higher at $4.20-1/4 per bushel, and CBOT wheat Wv1 settled 5-1/4 cents higher at $5.34-1/4 per bushel. Soybeans Sv1 settled 6-1/2 cents higher at $10.54-1/2 per bushel.
Favourable prospects for the U.S. soybean and corn harvests were also curbing Chicago prices.
Corn has been underpinned by brisk exports, concerns over Tar Spot and Southern Rust in the U.S. corn belt and technical support.
U.S. weekly corn export sales reported on Thursday topped 2 million metric tons for the second week in a row.
Soybean prices had climbed to a two-month peak last week, buoyed by hopes that China would revert to buying U.S. crops after months of shunning the origin in a wider trade war with Washington. But no such purchases have been confirmed.
Traders will be monitoring U.S.-Chinese talks in the coming days, with senior Chinese trade negotiator Li Chenggang expected in Washington.
“Beans are limited by a lack of China demand,” said Randy Place, analyst at Hightower Report. “That limits the rallies until they show signs of stepping up and buying.”
Abundant production from Northern Hemisphere harvests and an improving outlook for crops in Southern Hemisphere exporters Argentina and Australia have weighed on wheat prices this week.
—Additional reporting by Gus Trompiz in Paris and Naveen Thukral in Singapore.
