Grain futures declined on Friday, with wheat touching 4-month lows. Corn and soybeans lost ground as well.
On the Chicago Board of Trade, corn for March delivery declined 0.69 percent to $4.3062 a bushel by 15:44 GMT. Futures held in a range between day’s high and low of $4.3488 and $4.2838 per bushel, respectively. On Tuesday, prices jumped to $4.4025 per bushel, the highest since October 25th. Corn added 2.26% last week following a gain of 0.38% in the preceding 5-day-period. Prices climbed 0.8 percent yesterday on signs of increasing demand for ethanol.
China announced on December 6th it had rejected US shipments which contained insect-resistant MIR 162 grain until they have its safety assessed. The USDA reported that about 3 million tons for export to China hadn’t been expected for shipping as of November 28th. According to a separate report by the General Administration of Quality Supervision, Inspection and Quarantine nearly 180 000 tons, which contained the substance, had been rejected and returned.
“There is continued speculation that more U.S. corn cargoes have or will be rejected by the Chinese because of unapproved GMO strains,” said Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, cited by Bloomberg.
The US Department of Agriculture reported on Tuesday that world corn output in the year beginning October 1st is projected to be 964.28 million metric tons, compared to a 962.83 million forecast in the previous month and up from last year’s 862.88 million metric tons. The agency added that at the end of the marketing year (August 31st), the US surplus may reach 1.792 billion bushels, down from 1.887 billion forecast in November, but well above last year’s 824 million bushels, which is 118% less than the projected US surplus for next year.
DTN’s December 12th forecast called for episodes of below to much below normal temperatures across the Midwest, with snow and some mixed precipitation over southern and eastern areas. Winter wheat is likely well established through the Central and Southern Plains region at this time. There is no damaging cold indicated at this time, but a close eye should be kept on the situation as significant cold weather is expected to remain in Canada.
Wheat futures for settlement in March traded at $6.2813 per bushel at 15:44 GMT, losing 0.8% on daily basis. Prices jumped to a session high of $6.3488, while day’s low was touched at $6.2712 per bushel, the lowest since August 16th. The grain lost 2.6% last week, snapping two five-day periods of advances of 3.0% and 0.82%, respectively.
Soybeans plunged as well
Soybeans futures for settlement in January traded at $13.1813 per bushel at 15:45 GMT, losing 0.4% on a daily basis. Prices swung between day’s high and low of $13.2475 and $13.1238 per bushel. The oilseed lost 0.85% last week after gaining 1.34% in the preceding one. On Tuesday, soybeans reached $13.5338, the strongest level since September 19th.
The USDA reported that global soybeans production is projected to reach a record high of 284.94 million tons, compared with a 283.54 million forecast in November and up from 268.02 million a year earlier.
DTN’s forecast called for favorable conditions for developing crops in Brazil, although there is a probability of a turn to warmer and drier weather in the south during the next seven days, depleting soil moisture. In Argentina conditions will be favorable for developing crops and the remaining planting. However, a turn to warmer and drier weather in the next five days, will deplete the soil moisture. There is a likelihood of some showers to develop during the middle of next week.