Chicago | Reuters — Chicago Board of Trade corn and soybean futures fell to one-week lows on Friday, pressured by forecasts for beneficial rains in the U.S. Midwest, traders said.
Wheat futures also were lower, with traders locking in profits from a rally that has pushed prices higher for five weeks in a row.
Signs of poor demand, highlighted by lacklustre export data and weakness in the cash market, added to the bearish tone hanging over grains futures on Friday.
The latest weather projections pointed to significant rain in parts of the Midwest in the week ahead, which analysts said could bolster the condition of crops before key growth stages this summer.
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“Trade (is) continuing to ease overbought conditions as we watch forecasts evolve short term with some relief expected this weekend, and into later next week,” brokerage FuturesOne said in a note to clients.
CBOT December corn futures settled down 32-3/4 cents at $5.88 a bushel and CBOT November soybean futures were off 29-1/2 cents at $13.10 a bushel (all figures US$).
“These (dry) conditions have not … irreversibly impacted corn and soybean yields until now. Everything will depend on the weather evolution in the next three weeks,” consultancy Agritel said.
CBOT soft red winter wheat futures for September delivery were down 6-1/2 cents at $7.46-1/2 a bushel. The contract has jumped 21 per cent in the last five weeks.
The U.S. Agriculture Department on Friday said weekly export sales of corn totaled just 83,100 metric tonnes, near the low end of market estimates that ranged from zero to 800,000 tonnes.
Wheat export sales were reported at 123,900 tonnes and soybean export sales at 626,300 tonnes. That compares with trade expectations of 100,000 to 400,000 tonnes for wheat and 100,000 to 900,000 for soybeans.
On the cash market front, spot basis bids for both corn and soybeans have tumbled at processors and elevators this week as a spate of heavy farmer selling has satisfied demand at grain terminals around the Midwest.
— Reporting for Reuters by Mark Weinraub in Chicago; additional reporting by Gus Trompiz in Paris and Matthew Chye in Singapore.
