Wheat, corn, soybeans fall; set for weekly losses

SINGAPORE: Chicago wheat, corn and soybeans slid on Friday and were headed for weekly declines on liquidation by investors, although expectations of dry weather, particularly in key wheat-growing regions, limited the downside.

The most-active wheat contract on the Chicago Board of Trade (CBOT) fell 0.1% to $6.11-1/2 a bushel, as of 0404 GMT, and soybeans lost 0.2% to $11.90 a bushel.

Corn dipped 0.1% to $4.67-1/4 a bushel.

Wheat is down 4.1% this week and corn has lost 2.7%, with both markets suffering their first weekly drop in about a month.

Soybeans are down around 1% after two straight weekly gains. “There is some pressure from long positions being liquidated by funds,” said one grains trader in Singapore.

“Overall, oil is still up due to the Middle East tensions and there are forecasts of dry weather.”

Oil prices climbed more than 1% on Friday after renewed fighting broke out between the US and Iran, threatening a shaky ceasefire and dashing hopes for progress on reopening the Strait of Hormuz, a key oil and gas transit route.

US ally the United Arab Emirates said its air defences were engaging missile and drone threats from Iran early on Friday in a further test of the shaky, month-long ceasefire between the US and Iran.

Market participants are closely monitoring the weather in the drought-hit US wheat belt, where this week’s rainfall missed some critically dry areas and may have arrived too late or in insufficient amounts to prevent crop damage elsewhere, analysts said. However, freezing temperatures caused only minimal frost damage, easing some weather concerns.

Forecasts of dry weather due to the El Nino weather pattern are also supporting grains and oilseeds.

The US Department of Agriculture’s weekly report said 31% of the nation’s winter wheat crop was in good to excellent condition, up from 30% last week but still the lowest for this time of the year since 2023.