Chicago | Reuters — Chicago soybean futures ended lower on Thursday, pressured by cool, rainy forecasts across the U.S. growing belt, though dryness in the upper Midwest continues to threaten developing crops.
Corn eased as beneficial rains aided crops entering pollination, while wheat firmed as sparse moisture reached drought-hit spring wheat regions.
The most-active soybean contract on the Chicago Board of Trade (CBOT) lost 7-3/4 cents to end at $13.19-1/2 per bushel (all figures US$).
CBOT corn fell 7-1/4 cents to $5.23-3/4 per bushel and wheat lost 4-1/4 cents to $6.18 per bushel.
Soybeans attempted to move higher for a second day following lower-than-expected crop ratings from the U.S. Department of Agriculture earlier in the week.
“The upper Midwest, where it is its driest, could still be more vulnerable on the beans,” said Mark Schultz, chief analyst at Northstar Commodities.
Soybeans have benefited from recent rains, but will need moisture in late July/early August during the crucial development phase for the U.S. crop.
Corn was pressured by cooler, wetter forecasts that benefit the crop as tassels come on, Schultz said.
Corn was also pressured by a report from Brazil’s CONAB agency that showed the country’s 2020-21 total crop did not drop as much as expected, to 93.385 million tonnes from 96.392 million tonnes in its June forecast.
Traders had anticipated a greater fall in corn supply from the South American producer, according to Mike Zuzolo, president of Global Commodities Analytics.
“Trade is probably expecting the Brazilian maize crop to be about five million tonnes less,” he said.
Meanwhile, the wheat market traded near even, pressured by corn but supported by Kansas City and Minneapolis markets as spring wheat continues to face drought and the winter wheat harvest peaks.
“Once you get out of Kansas and start moving north, the yields, they’re going to start tapering the other way, less than stellar on the yields,” said Schultz.
— Reporting for Reuters by Christopher Walljasper in Chicago; additional reporting by Gus Trompiz.