Grain futures mixed, soybeans extend losses on favorable weather in the U.S. and Brazil

Grain futures were mixed on Wednesday with corn rising, while wheat and soybeans fell. The oilseed slipped for a third day after forecasts for favorable weather conditions in the U.S. and Brazil boosted crops.

On the Chicago Board of Trade, soybeans for delivery in November fell by 0.27% to $12.8488 per bushel at 11:26 GMT. The contract held in range between days high and low of $12.8813 and $12.8163 per bushel respectively. The oilseed fell by 0.5% on Tuesday and extended its weekly decline to nearly 0.9% after it lost 1.8% in the preceding week.

Soybeans fell for a third day amid forecasts for favorable weather in the U.S. and Brazil, the worlds two biggest producers of the grain. DTN reported on October 8 that a drier trend in the Midwest will continue through this week, improving conditions for the delayed harvest. The warmer weather will also help drying the crops. Rains may be seen only in a few areas but an increase in rainfall is possible in the next six to ten days.

Meanwhile, farmers in Brazil began planting soybeans in the central parts of the country after recent rainfall provided soil moisture for germination. The South American country is the second biggest producer of the oilseed after the U.S., and third largest exporter. Thirty-two percent of the nations coming oilseed crop was already sold, compared to 45% a year ago, forecaster Safras & Mercado said.

Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note: “Forecasts for favorable harvest weather in the U.S. and beneficial planting rains in South America weighed on CBOT soybean prices.”

Elsewhere on the market, corn futures for settlement in December traded at $4.4288 per bushel at 11:22 GMT, up 0.22% on the day. Prices held in range between days high and low of $4.4388 and $4.4063 a bushel respectively. The grain plunged 1.8% on Tuesday but trimmed its weekly decline to 0.1% after Wednesdays rebound.

Wheat with minor retreat

Wheat also fell on the day, extending Tuesdays decline. The December contract traded at $6.9163 per bushel at 11:22 GMT, down 0.20%. Prices held in days range between days high and low of $6.9413 and $6.9063 a bushel. The grain fell by 0.3% on Tuesday after hitting a 3 1/2-month high at $6.9938 per bushel and further trimmed its weekly advance to 0.7% on Wednesday.

The grain was well supported recently as wet weather in the Black Sea Region threatened to decrease production in Russia and Ukraine. Ukraine’s national weather center in Kiev said on September 27 that the nation’s winter-wheat planting may be 30% lower than expected following record rainfall.

Meanwhile, Russias agriculture Minister Nikolai Fedorov said yesterday that his country may plant only 13 million hectares of wheat next year, down from previously projected 16.4 million.

DTN reported on October 8 that mostly favorable weather conditions will favor planting and developing of winter wheat in the Southern plains, although more rain would benefit some areas. The agency pointed out that rainfall in the region could increase in the next six to ten days.