Chicago | Reuters—Chicago wheat Wv1 and corn futures Cv1 fell on Friday as news of beneficial rain in Russia and profit-taking dented wheat prices, leading to corn selling as well.
Forecasts for a smaller Russian wheat harvest due to persistent drought and frost pushed prices to a 10-month high of $7.20 a bushel this week. But by Friday, traders were less concerned about how much relief the well-timed rains might give the country’s crop, analysts said.
“The Russian wheat story is running its course, and we’re going to have to see a new element to keep momentum going,” said Brian Splitt, co-founder of marketing and consulting firm AgMarket. “The weather can only stay bullish for so long.”
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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.
CBOT July wheat WN24 slipped 11-3/4 cents to settle at $6.81 a bushel.
For the week, the most-active corn futures contract on a continuous chart Cv1 ended down 3.98%, the biggest percentage drop since last July, weighed down by wheat prices and as traders adjusted positions at month-end.
CBOT July corn CN24 settled down 2-1/2 cents at $4.46-1/4 per bushel.
Soybean futures also eased, as investors adjusted month-end positions. Weekly grain export sales fell in line with trade expectations and U.S. inflation data showed no worrying signs of fresh upward momentum last month.
CBOT July soybean futures SN24 settled down 4-3/4 cents to $12.05 per bushel.
U.S. farmers have made steady progress planting corn and soybeans between showers and the rain could help early growth of this year’s crops.
However, predictions of a record-warm summer and other weather risks may be adding support to corn and soy futures, traders said.
Speedy soybean sales from Argentina also weighed on Chicago soy futures.
—Additional reporting for Reuters by Gus Trompiz in Paris and Peter Hobson in Canberra
