Chicago | Reuters — Chicago corn futures posted a third straight weekly decline on Friday, as traders reacted to a government forecast that U.S. farmers will produce a record-large crop this year.
Wheat was lower, following corn. Commodity funds hold a sizeable net short position in Chicago wheat futures, leaving the market prone to volatility and bouts of short-covering.
Soybean futures rose, supported by technical buying.
Chicago Board of Trade’s (CBOT) most-active December corn futures settled down four cents at $4.64 per bushel (all figures US$). For the week, the contract fell 15-1/2 cents a bushel or nearly 2.8 per cent.
Read Also
Alberta crop conditions improve: report
Varied precipitation and warm temperatures were generally beneficial for crop development across Alberta during the week ended July 8, according to the latest provincial crop report released July 11.
The downturn came a day after the U.S. Department of Agriculture (USDA) raised its estimate for the nation’s 2023-24 corn crop to 15.234 billion bushels in a monthly report, from 15.064 billion in October.
“The corn market is still dealing with the aftermath of yesterday’s USDA report,” said Dale Durchholz, a commodity risk consultant in Bloomington, Illinois. “Some people are probably thinking the corn crop is even a little bit larger yet.”
A recovery in crude oil after losses this week also lent some support to grains on Friday.
CBOT December soft red winter wheat settled down 5-1/2 cents at $5.75-1/4 per bushel, while most-active January soybean futures settled up four cents to $13.47-1/2 per bushel.
A wave of Chinese purchases of U.S. soybeans lifted the oilseed.
Brazilian crop agency Conab raised its forecast for Brazil’s 2023-24 soybean crop.
— Brendan O’Brien is a Reuters breaking news reporter in Chicago.
