CANBERRA: Chicago corn futures edged lower on Friday after disappointing US export data but were on track for a fourth consecutive weekly gain underpinned by expectations that US supply will tighten.
Chicago corn futures lower
Wheat and soybeans also fell, partly due to a strengthening US dollar making US crops costlier for overseas buyers.
Fundamentals
The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.1% at $4.43 a bushel by 0155 GMT but was up 0.8% for the week.
CBOT soybeans fell 0.4% to $9.92-1/4 a bushel and were down 0.2% from last Friday’s close.
Wheat slipped 0.4% to $5.56-1/2 a bushel and was headed for a 0.1% weekly loss.
Corn futures rose to $4.51-1/4 on Wednesday, the highest since June 25, after the US Department of Agriculture raised its projection for US corn exports and cut its estimate for end of season US corn stockpiles to 1.738 billion bushels from 1.938 billion.
But USDA weekly export data on Thursday showed net US corn sales at 946,900 metric tons, below analyst forecasts for at least 1.1 million tons, and a stronger dollar could also crimp exports.
Some traders were taking profits after the rally to 5-1/2-month highs, analysts said.
US soybean sales of 1,173,800 metric tons were also below trade estimates, although the USDA later announced another 334,000 tons of daily sales to undisclosed buyers.
The threat of huge South American production hangs over the soybean market, keeping CBOT prices close to four-year lows.
Brazilian national crop agency Conab and oilseed crushing group Abiove on Thursday increased their estimates for the country’s 2025 soybean crop, which could reach record levels following improved weather conditions.
Conab said Brazil could harvest 166.21 million metric tons and Abiove predicted 168.7 million tons.
Ahead of US soybean crush numbers on Monday, analysts said they thought the total crush dipped in November from an all-time high in October but the daily processing rate likely rose to the highest on record.
In wheat, Ukrainian agricultural producers’ union UAC said high demand for its wheat exports could increase prices by $20 to $25 per ton in December-January.
Saudi Arabia’s state purchasing agency, the General Food Security Authority (GFSA), has issued an international tender to buy an estimated 595,000 metric tons of wheat, European traders said.
Source: Brecorder
