CHICAGO: Chicago soybean futures rose on Friday, driven by short-covering ahead of the weekend and technical buying, after forecasts for a bumper South American crop sent soy futures plunging to a four-year low a day earlier.
Wheat futures set contract lows for a second-straight day as strong global supply weighed on the market, while corn gained on an uptick in export business.
Agricultural commodities are under pressure from a US dollar that is lingering near a two-year high. A stronger dollar makes US crops less competitive overseas.
Chicago Board of Trade soybeans ended up 11-1/2 cents to $9.74-1/2 a bushel, ending down 1.4% for the week, as position-squaring ahead of the weekend and holiday season added a lift to prices. Soybean futures hit a four-year low of $9.45-1/4 on Thursday as the runup to what is expected to be a record-large Brazilian soybean harvest pressured prices.
“They’re on their way to having a great crop, and that’s going to put a wet blanket on US prices,” said Chuck Shelby, president of Risk Management Commodities. The most-active wheat contract on the CBOT was unchanged at $5.33 a bushel, settling down 3.4% for the week, after it and most other contracts posted lifetime lows earlier in the session. CBOT corn ended 5-1/2 cents higher at $4.46-1/4 a bushel, ending 0.96% higher for the week.
Wheat import tenders this week have suggested Black Sea supplies remain readily available, while large harvests wrapping up in Argentina and Australia are adding to export competition.
“Wheat is the weak link here,” Shelby said. Corn has been underpinned by the US Department of Agriculture’s reduced forecast for US end-of-season inventories, published last week. An earlier drop in corn prices triggered an uptick in global demand, particularly from South Korean buyers.
On Thursday, Chicago soybean futures were little changed after hitting a fresh four-year low, while wheat fell to a one-month low as a strong dollar added to concerns about competition from other exporting zones.
Corn edged down to its lowest in over a week, tracking weakness in soy and wheat.
The most-active soybean contract on the Chicago Board of Trade (CBOT) was up 0.08% at $9.52-1/2 a bushel at 1223 GMT after falling to $9.45-1/4, its weakest level since early September 2020.
Source: Brecorder
