Chicago | Reuters — U.S. wheat climbed as much as two per cent in a bargain-buying bounce on Friday, rebounding after three sessions of steep declines that dragged futures into technically oversold territory.
Soybean and corn futures each were lower at the Chicago Board of Trade (CBOT) with investors in all three trading pits squaring their books ahead of the U.S. Department of Agriculture’s prospective plantings report due next week.
Wheat shed more than four per cent for the week despite Friday’s gains, following scattered showers in the U.S. and forecasts for crop-friendly precipitation in Ukraine and Russia.
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“Funds are short (wheat). So as we are getting closer to the report, they’re evening up a bit,” said Don Roose, analyst at brokerage U.S. Commodities in Iowa.
CBOT May wheat settled up 8-1/2 cents to $5.07-3/4 per bushel (all figures US$). CBOT May corn edged 1/4 cent lower to $3.91 but gained 1.7 per cent for the week, for the second straight weekly gain.
Soybeans were lower for the day and the week, with soybeans for May delivery finishing 7-1/4 cents lower at $9.67-1/4 per bushel and losing 0.6 per cent for the week.
Soybeans eased four sessions in a row as farmers continued to gather record soy harvests in South America.
“There is little fresh news as traders zero in on Tuesday’s key planting and stocks reports,” analyst Richard Brock said in a note to clients. “The South American crop continues to look strong, with drier conditions in Argentina boosting the outlook there.”
Outlooks for warm and dry conditions over the next 10 days in Argentina should allow harvest there to advance after excessively wet weather this month left fields muddy, meteorologists said.
USDA next week is likely to show farmers in the U.S. boosting soybean plantings at the expense of corn acres this spring, a Reuters poll showed.
However, with global crop stockpiles of each crop plentiful and futures still near last year’s multiyear lows, the growers may struggle to turn profits, Roose said.
— Michael Hirtzer reports on crop commodity markets for Reuters from Chicago. Additional reporting for Reuters by Gus Trompiz in Paris and Colin Packham in Sydney.
