Grain futures fell on Friday, wheat also edged lower, but was poised to snap six weeks of declines, the longest streak in more than two years amid signs of robust global demand.
On the Chicago Board of Trade, wheat futures for settlement in March declined 0.64% to trade at $5.6975 per bushel by 13:36 GMT. Prices jumped to a session high of $5.7425, while day’s bottom was touched at $5.6938 per bushel. On January 10th, prices touched $5.6088 per bushel, the weakest level since July 2010.
After six weekly declines, the longest losing streak since October 2011 prices headed for a 0.3 percent advance so far this week. The grain slumped 22% in 2013, the largest annual decline since 2008, on expectations for a record global output of 712.7 million tons, according to data by the US Department of Agriculture.
The worlds wheat top importer, Egypt, announced yesterday that it agreed to buy 295 000 metric tons from Russia, Ukraine, France and the US. At the same time, data by the US Agriculture Ministry showed that Japan purchased 105 019 tons of milling wheat from Canada and the US.
According to a report by the US Department of Agriculture, US exports accelerated to 401 924 tons in the week ended January 9th from 274 301 in the preceding week.
Weather forecasting models also provided some support to the wheat market, by pointing to mostly favorable conditions in the Southern Plains. DTN reported on January 16th that cold and dry weather is expected in the Midwest during the next 10 days. Today, harsh winds will produce blizzard conditions over the northern areas. However, the colder pattern will be much less intense than the freezing temperatures that occurred during the first half of the winter period. Meanwhile, no damaging cold is indicated for the next 10 days over the Southern Plains, with mostly dry weather during this period. According to the website, the wheat crop is generally in good condition, but additional moisture will be needed as crops exit dormancy later this year.
Elsewhere on the grains market, corn futures for March delivery lost 0.42% to trade at $4.2563 a bushel by 13:24 GMT. Futures held in a range between day’s high and low of $4.2788 and $4.2562 per bushel. On January 10th prices touched $4.0638 per bushel, the lowest since August 2010.
The grain lost nearly 40% in 2013, the steepest annual drop on record amid expectations the global output will surge to 964.3 million tons in 2013-2014 season, boosted by record production in the US, the world’s top producer.
Soybeans lose ground
On the Chicago Board of Trade, soybeans futures for settlement in March dropped 0.66% to trade at $13.0588 per bushel by 13:39 GMT. Prices touched a session high at $13.1538 per bushel, while day’s low stood at $13.0662 per bushel. Yesterday prices touched $13.2988 per bushel, the strongest level since December 27th. The oilseed settled last year 8.5% lower.
Weather forecasting models called for mostly favorable conditions in Brazil, while weather conditions in Argentina may be stressful for the developing soybeans and corn. DTN’s January 16th forecast called for a round of extreme heat in central Argentina to remain until Saturday. High temperatures may damage the pollinating corn. The dry and hot weather may also reduce soil moisture for corn and soybeans. A cold front, accompanied by showers may occur during the weekend, recharging the soil moisture.
Conditions remain favorable for developing soybeans in the Brazilian producing regions, Rio Grande do Sul, Parana and Mato Grosso. According to the website, during the weekend and early next week a new round of hot weather may re-develop for Rio Grande do Sul, bringing dry and hot conditions for a time.
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