Grain futures were mixed on Thursday, with wheat advancing, while corn and soybeans declined. Grains registered annual declines in 2013, with corn losing as much as 40%, the steepest decline on record.
On the Chicago Board of Trade, wheat futures for settlement in March advanced 0.20% to trade at $6.0238 per bushel by 14:49 GMT. Prices jumped to a session high of $6.0500, while day’s bottom was touched at $6.0175 per bushel. On December 31st prices touched $5.9938 per bushel, the lowest since May 2012. The grain slumped 22% in 2013, the largest annual decline since 2008, on expectations for a record-high global output of 711.42 million metric tons, according to data by the USDA.
On December 10th, the government agency raised its November forecast before the start of the Northern Hemisphere harvests in 2014 to 182.78 million tons, up from 178.48 million tons. The revision was mainly due to the higher-than-expected Canadian and Australian harvests compared to a year ago.
However, wheat was pressured by weather forecasting models, which called for suitable weather conditions over most of the major growing areas. DTN reported on December 31st that there is no threat of damaging cold weather in the US. The well-established wheat crop is now dormant and will remain so, the agency said. However, next week is more uncertain as a strong Arctic blast is expected to move into the north-central US.
Soybeans futures for settlement in March traded at $12.8438 per bushel at 14:48 GMT, losing 1.91% on a daily basis. Prices swung between day’s high and low of $12.9162 and $12.8212 per bushel respectively. The oilseed settled the year 8.5% lower.
Corn down as well
Corn futures for March delivery traded at $4.2238 a bushel by 14:46 GMT, losing 0.15% for the day. Futures held in a range between day’s high and low of $4.2312 and $4.2138 per bushel. The grain lost nearly 40% in 2013, the steepest annual drop on record, on projections that the global output will surge to 964.3 million tons in the 2013-2014 season, boosted by record production in the US, the world’s top producer.
However, losses were limited as corn was supported by forecasts that called for unfavorable conditions in parts of Argentina. DTNs December 31st forecast called for dry weather in Santa Fe and Buenos Aires, with only slight chances of rain precipitation. It will take some time before there are good chances of new showers. Meanwhile, the growing conditions in Brazil will be favorable for corn and soybeans at the end of this week.
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