US wheat and corn futures fell on Friday, retreating from multi-month highs established a day earlier as traders took profits and focused on prospects for better weather in the drought-hit US Plains wheat belt. Soyabeans sagged on much-needed rains in Argentina's crop belt and worries about US soyabean export demand.
Broad declines in commodities added to bearish sentiment. The 19-market Thomson Reuters CoreCommodity Index was down 2.1 percent as US crude oil fell on renewed concerns about rising crude supplies. As of 1:03 pm CST (1903 GMT), Chicago Board of Trade March wheat was down 7-1/4 cents at $4.49 per bushel.
CBOT March corn was down 3 cents at $3.62-3/4 a bushel while March soyabeans were down 3 cents at $9.84-3/4 a bushel. Worries about dry conditions in major US winter wheat states such as Kansas and Oklahoma triggered a short-covering rally this month in K.C. hard red winter wheat futures and CBOT wheat as well. K.C. March HRW wheat reached $4.84-1/2 a bushel on Thursday, its highest since mid-August, before turning lower.
The run-up in prices appeared likely to curb export demand for US wheat, a factor underscored when the US Department of Agriculture on Thursday lowered its US wheat export forecast for the 2017/18 marketing year. CBOT March corn fell a day after reaching a three-month peak at $3.65-1/2 a bushel. Recent strength in corn tied to improved export demand has sparked a pick-up in US farmer selling, traders said.
Still, for the week, front-month CBOT corn and wheat futures were on track to post slight gains for the week. Trade were also digesting Friday's monthly USDA report in which the government raised its forecast of US 2017/18 soyabean ending stocks, reflecting a slower-than-expected pace of exports.
Comments
Comments are closed for this article.