CHICAGO: US soybean futures weakened on Friday after hitting a near two-year high in the previous session on surging crude oil prices, while corn firmed as traders squared positions ahead of the weekend. Wheat advanced on end-of-week speculative buying and technical buying and as dry conditions and forecasts for a drop in temperatures in the Plains wheat belt sparked concerns about the winter crop.
Grain markets were still on edge as the US-Israeli war with Iran neared the two-week mark and as crude oil prices hovered near four-year highs.
Higher crude prices can support crop futures as part of commodity investment flows driven by geopolitical and economic factors, and because corn and soyoil are used to produce biofuel.
“If the situation calms itself over the weekend, we could be significantly lower” next week, said Jack Scoville, analyst at The Price Futures Group.
“But if it heats up and petroleum continues to rally, we could be significantly higher.” Traders are awaiting a meeting this weekend between US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng to gauge prospects for a planned visit by Presidents Donald Trump and Xi Jinping at the end of March.
Chinese imports of US soybeans are a major issue as the geopolitical rivals pursue protracted trade talks. Chicago Board of Trade May soybeans settled 2 cents lower at USD12.25-1/4 a bushel, up 2percent on the week, the contract’s sixth straight weekly gain.
May corn ended up 4-3/4 cents at USD4.67-1/4 a bushel, gaining 1.5percent in the week. CBOT May wheat gained 15-1/4 cents to end at USD6.13-3/4 a bushel, with technical buying above the USD6 level accelerating gains. The contract lost 0.5percent on the week.