CHICAGO: Chicago corn and soy futures closed near four-year lows on Friday and posted weekly losses, while wheat prices rose on expectations of a poor crop in France as traders positioned for Monday’s US supply and demand report.
A survey of analysts forecast slightly higher US corn and soy production in the US Department of Agriculture (USDA) report, which would add to large global supplies.
The most-active corn contract on the Chicago Board of Trade (CBOT) closed down 2 cents at $3.95 bushel, the lowest on a continuous chart since October 2020.
Soybeans ended down 5-3/4 cents at $10.02-1/2 per bushel, the lowest since September 2020. The oilseed initially gained after the USDA reported export sales of 132,000 tons to China for 2024/25 delivery and as an oilseed industry strike in Argentina delayed ships loading in the major soymeal exporter.
But soybeans ended down for the week on a slow export pace overall and news of farmer selling. Wheat closed up 5 cents at $5.42-1/2 per bushel, ending the week higher, boosted by declining crop conditions in France. The market awaited major importer Egypt’s largest ever tender on Monday.
France’s farm ministry on Friday lowered its estimate of the country’s 2024 soft wheat output, now expected to be 25% below last year’s volume.
A survey of analysts for the Monday USDA report had an average forecast for US corn production of 15.112 billion bushels, marginally up from the USDA’s July forecast of 15.100 billion with higher expected yields offsetting an expected drop in planted area. “We look for a reduction in US corn planted and harvested area following inclement conditions across the Northwest Midwest in June,” J.P. Morgan said in a weekly update on Friday, adding it had upwardly revised its corn yield forecast.
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