Grain futures were mixed on Thursday with corn slightly retreating, while soybeans and wheat gained after the U.S. Department of Agriculture reported increased demand for U.S. crops and unfavorable weather continued to impair field work in the U.S. and South America.
On the Chicago Board of Trade, soybeans futures for settlement in November rose by 0.29% to $13.1425 per bushel by 9:37 GMT. Prices held in range between days high of $13.1588 per bushel, close to yesterdays near-one-month high, and days low of $13.0888 a bushel. The oilseed added 0.6% on Wednesday and extended its weekly advance to 1.8% after Thursdays gain.
DTN reported on October 23 that wet conditions after Tuesdays rains will continue to slow down field work in the Midwest. Drier and colder weather in the next several days is expected to improve conditions but wet and stormy weather will develop in the next six to ten days, DTN added. In Brazil, heavy rains are projected to delay the planting of corn and soybeans in the Rio Grande do Sul and Parana states during the next five days.
Soybeans and corn also drew support after the USDA reported yesterday that U.S. exporters sold 120 000 tons of the oilseed to Russia by August 31, while, according to the EIA, ethanol production surged 3.2% to 897 000 barrels per day in the week ended October 18, the highest since June 2012.
Corn futures for settlement in December traded at $4.4313 per bushel at 9:32 GMT, down 0.02% on the day. Prices shifted in a days range between $4.4438 and $4.4138 per bushel. The grain added 1.1% on Wednesday, the most in a week, but reduced its weekly advance to 0.4% on Thursday.
Wheat extends gains
Wheat rose for a third straight day on Thursday after unfavorable weather conditions in South America continued to threaten yields, while Chinas imports may more than triple this season.
On the Chicago board of Trade, wheat futures for December settlement rose by 0.04% to $7.0188 per bushel by 9:36 GMT. Prices held in range between days high of $7.0788 a bushel, near Mondays four-month high, and days low of $7.0075. The grain added 0.2% on Wednesday, a fourth daily gain in five, and trimmed its weekly decline to less than 0.5% after Thursdays advance.
DTN reported on October 23 that favorable conditions in the U.S. Southern Plains will continue to benefit the planting and developing of wheat but some rain and lower temperatures may develop in the next six to ten days, potentially slowing down field work. In Brazil, heavy rains would likely delay the wheat harvest in the Rio Grande do Sul state and the southern parts of Parana.
The U.S. Department of Agriculture reported that China committed to import 3.9 million tons of U.S. wheat this marketing year, up from 408 000 tons from a year earlier, as unfavorable weather disrupts crop developing in China and South America. Researcher Oil World said on October 22 that the worst drought in South Americas biggest exporter, Argentina, resulted in “irreversible damage” to the crop.
DTN said on October 23 that temperatures in Argentina were expected to bottom at 30 to 35 degrees Fahrenheit (minus 1 to 2 Celsius) on Thursday and Friday, putting heading wheat at risk of freeze damage.
Paul Deane, ANZ’s senior agricultural economist, wrote in a report: “Supply trends and developments in China, Brazil and Russia are most supportive for wheat prices. While improving weather conditions have allowed some increase in the pace of sowing after earlier delays, the area planted to winter grains in Russia’s central and southern regions are still 25 percent behind for this time of the year.”
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, Russia’s agriculture Minister Nikolai Fedorov said in October that his country may plant only 13 million hectares of wheat next year, down from previously projected 16.4 million.