Grain futures lost ground on Friday, wheat also declined, but was poised to snap a seven-week drop on potentially harmful weather conditions in the US, the largest exporter of the grain.
On the Chicago Board of Trade, wheat futures for settlement in March lost 0.65% to trade at $5.6688 per bushel by 13:13 GMT. Prices jumped to a session high of $5.7312, while day’s bottom was touched at $5.6662. On January 10th prices touched $5.6088 per bushel, the weakest since July 2010. However, the grain has headed for a 0.75% increase this week, the first weekly advance since the last week of November.
Wheat slumped 22% last year, marking 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.
Plants that lack a good quantity of snow cover “are at risk of being damaged by the icy weather that is also forecast for next week,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, cited by Bloomberg.
According to data by the US National Weather Service, the majority of the central and southern Plains, encompassing producing areas from Nebraska to Texas, doesnt have any snow cover to insulate wheat crops from freezing cold temperatures.
DTN’s January 23rd forecast also called for potentially harmful conditions for the soft red winter wheat in the northernmost part of the Midwest as the latest cold wave leads to temperatures few degrees below zero Fahrenheit. However, according to the website, snow cover should protect most of the crop from damage.
Meanwhile, DTN reported that the coldest of this weeks Arctic outbreak seems to stay east of the key Southern Plains wheat-growing areas. However, some portions of the winter wheat crops may experience some stress. A secondary round of cold weather early next week bears watching, but for now it is not expected to be of much concern.
Elsewhere on the grains market, soybeans futures for settlement in March lost 0.98% to trade at $12.6425 per bushel by 13:15 GMT. Prices touched a session high at $12.8038 per bushel, while day’s low stood at $12.6362 per bushel, the weakest level since January 2nd. The oilseed settled last year 8.5% lower.
Corn down as well
On the Chicago Board of Trade, corn futures for March delivery decreased by 0.64% to trade at $4.2588 a bushel by 13:16 GMT. Futures held in a range between day’s high and low of $4.2938 and $4.2638 per bushel. On January 10th prices touched $4.0638 per bushel, the lowest since August 2010.
The grain settled last week 1.7% lower after it 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.
DTN reported on January 23rd that a new cold front is expected to move into Argentina Thursday into Friday, bringing heavy, possibly severe storms. The rainfall will ease stress to corn and soybeans crops, but at the same time some local flooding may occur. However, the rain will be much more beneficial, offsetting most of the negative effects of the storms.
Meanwhile, conditions in the Brazilian Rio Grande do Sul province will continue to be hot and dry for the next few days, before lower temperatures and showers occur. By Friday, the lower temperatures and the showers will ease the stress for developing corn and soybeans crops.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
